The Kerala Budget 2026 has allocated ₹1,182.43 crore for the Public Works department. Of this, ₹1,091.15 crore is for roads and bridges, and ₹91.28 crore for national highways. Finance Minister K.N. Balagopal said 898 km of State highways are now four-laned, with 3,193 km two-laned. Additionally, 52 km of district roads have been made four-lane and 10,953 km two-lane. A new ₹10 crore feasibility study will check the possibility of a tunnel road from Kattappana to Theni. "The tunnel is expected to reduce the distance by at least 20 km," the Minister explained. Other allocations include ₹300.50 crore for upgrading main district roads with new designs and overlays. ₹100 crore goes to the Kerala State Transport Project (KSTP) phase two for various road works. ₹165 crore is focused on road construction and maintenance via NABARD funds. Another ₹62 crore is allocated for modernizing State highways as per Central Road Fund Act, 2000. To finish bridge projects using NABARD loans and launch new ones, ₹95 crore has been set aside. ₹87 crore will fund designing and overlay works on State highways.₹58.80 crore is allocated for annuity payments under the PPP model for road construction in other cities. Safety also sees a boost. The budget for railway overbridges and underpasses has risen from ₹16 crore to ₹25 crore. An additional ₹5 crore will build an underpass at Dharmadom railway station in Kannur district. Restoration of old bridges, including those connecting tribal ‘Unnathis,’ will get ₹46.46 crore and ₹25 crore respectively. For ongoing State highway works, including protective measures and safety boards, ₹41 crore has been allocated. Road safety funds have risen from ₹15 crore to ₹23.37 crore to reduce accidents. The plan also includes ₹15 crore for improving pilgrim roads in Pathanamthitta and Kottayam districts and ₹21.50 crore to upgrade the Kerala Highway Research Institute into a Centre of Excellence.