In a landmark announcement, Kerala Finance Minister K.N. Balagopal declared free education up to the graduate level in government and aided colleges during the Kerala Budget 2026. Until now, free schooling was only up to Class 12. This move will make Arts and Science degree courses free for students across the state. The exact revenue loss from this reform is still being calculated. The Budget also tackles the yearly ₹8,000 crore spent by students going abroad or outside Kerala for higher education. To reduce this outflow, the government plans to set up a 'Global School' centering on modern technology, vocational training, and future-focused studies with ₹10 crore budgeted for initial activities. Additionally, the government will strengthen ties between higher education research and local bodies, allocating ₹10 crore annually to each District Planning Committee to improve technical support for local projects. To ease student accommodation, a public hostel scheme will begin in Ernakulam, Thrissur, and Kozhikode, starting with ₹10 crore funds. Scholarship schemes have also been boosted, including ₹15,000 monthly support for full-time PhD scholars without other fellowships, with a total ₹38.76 crore reserved for various scholarships and fellowships. Highlighting education advancement since 2016-17, the Budget allocated ₹851.46 crore for Higher Education Commission initiatives and the 4-year undergraduate program, an 8.67% increase from last year. University activities will receive ₹259.09 crore, technical education ₹295 crore, plus additional funds for Centers of Excellence, digital university management, science outreach, law colleges, skill development, and infrastructure upgrades in government colleges.