There has been a serious effort by the finance minister to sustain financial inputs in the social sector despite financial constraints. State budget 2025-26 acknowledges the contribution of past investments in human resource development in state’s economic development.
In the social sector, there has been an increase in allocation of 8% in health. The importance given to early detection and healthcare for cancer patients at the level of taluk hospitals and above is a move in the right direction in view of increasing cancer incidence. It is expected more funds may be available in health sector if the World Bank-assisted health improvement programme materialises.
The outlay for higher education has increased by 13% over the previous year. However, given the importance of higher education in a knowledge-based economy, massive investments are required in the sector.
The significant improvement in the allocation for social welfare and women’s welfare is worth mentioning. But the gender budget analysis presented shows total allocation for women and girls under all government departments together showed a rise of just 4%. While elderly budgeting was proposed earlier, it is yet to be realised. Such an analysis is important as nearly one-fifth of the state’s population are senior citizens and the state considers healthy ageing as a priority.
It is heartening to note that the outlay for elderly, infirm and destitute have increased by 46% over the previous year’s budget allocation. Another highlight is the declaration that the pending social security pension payments will be paid in the next financial year, which is a major expenditure commitment.
However, contrary to expectations, there is no proposal for increasing the pension amount. With ageing population, number of beneficiaries of social security pension is likely to increase in the coming years. Efforts to eliminate ineligible persons will improve the effectiveness of fund utilisation.
Despite constraints, the budget has earmarked substantial funds for LIFE Mission even while the central allocation under shows a decline. Overall, there has been a serious effort by the government to sustain financial inputs in social sector.