Datanomics: Kerala becomes first state to unveil 'Elderly Budget'

Though hailed as a first-of-its-kind initiative, nearly two-thirds of Kerala's elderly budget for FY27 goes towards pensions the state is obligated to pay

Kerala Finance Minister K N Balagopal recently announced an ‘Elderly Budget’ as part of the overall Budget, making his  state the first to do so in the country. The initiative allocates ₹46,236.52 crore for senior citizens in FY27 Budget estimates, representing 19.07 per cent of the state’s total Budget size. However, 68 per cent of the Budget allocation for the elderly is projected to be accounted for by retired government employees’ pension, which the state has to pay anyway.

 

Highest ageing population

 

Kerala’s elderly population has surged 47 per cent from 2011 to 2026 (projection). This is significantly higher than the pan-Indian figure of 36 per cent. The share of elderly in the total population in the state was higher by 4 to 8 percentage points than the all-India figures since 2011. 

 

 

One-fifth allocation for the aged  Elderly Budget is projected to account for 21.72 per cent of the total non-plan outlay and 3.8 per cent of total plan outlay in the state for FY27.  

Pension puzzle

 

Non-plan expenditure for the elderly is projected to be dominated by pensions at over 99 per cent for FY27, while plan spending prioritises health and other welfare  programmes.