Budget 2025: Social Sector Spending Sees a Dip 📉💸
- MediaFx
- Feb 4
- 2 min read
TL;DR: In the 2025 Budget, India's total spending went up by 7%, but the share for social sectors like health and education didn't keep pace. Over the past decade, the portion of funds for these sectors has stayed flat or even dropped. Health spending hasn't grown much, and key areas like rural development and education are seeing slower growth. Allocations for central schemes remain low, raising concerns about the government's commitment to social welfare.
Hey folks! Let's break down what's happening with our country's budget this year. The government's total spending has increased by 7%, jumping from ₹47.16 lakh crore in 2024-25 to ₹50.65 lakh crore in 2025-26.
But here's the kicker: the slice of the pie for social sectors like health, education, and rural development hasn't seen the same boost.
Declining Share in Total Expenditure 📉
Over the past decade, the share of social sector spending in the Union government's total expenditure has been pretty stagnant. Between 2014-15 and 2019-20, it averaged around 21% of the total spend and about 2.8% of our GDP. Even during the pandemic years (2019-20 to 2024-25), it stayed at 21%, with a slight bump to 3.3% of GDP due to emergency measures. But post-pandemic, the share has dipped to 19% in 2023-24 and is projected to stay there in 2025-26.
Health Spending Stagnates 🏥
You'd think after a global health crisis, we'd pump more money into healthcare, right? Sadly, that's not the case. The share of spending on medical and public health has actually decreased, averaging only 10% during the pandemic years, down from 16% in the pre-pandemic era. This slowdown is worrying, especially when we need strong healthcare systems more than ever.
Slower Growth in Key Areas 🐢
Not just health, but other crucial areas are feeling the pinch too. Rural development and education have seen their shares decline to 20% and 12%, respectively, during the pandemic years. This is a drop from 22% and 18% in the earlier period. While there's been a focus on infrastructure projects like the Jal Jeevan Mission and the Pradhan Mantri Awas Yojana, the growth in allocations for these areas has slowed down.
Central Schemes: Low Allocations 🚧
Central schemes, which are vital for implementing policies across states, haven't seen significant boosts in their budgets. For instance, the allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) remains at ₹86,000 crore, the same as the previous year.
Given the rising demand for rural jobs, this stagnant funding could be a bottleneck.
What's the Impact? 🤔
With the social sector's share in total expenditure declining, there's growing concern about the government's commitment to social welfare. Investments in health, education, and social protection are essential for building human capital and reducing inequality. The current trends suggest that these areas aren't being prioritized, which could have long-term implications for our country's development.
Join the Conversation 🗣️
What do you think about these budget allocations? Are we investing enough in our people's well-being? Drop your thoughts in the comments below! Let's get the discussion going.
