National Current Affairs
India’s First ‘Elderly Budget’ in Kerala
- 10 Feb 2026
- 3 min read
Why in News?
In the Kerala State Budget 2026-27, presented by Finance Minister K.N. Balagopal on 29 January 2026, Kerala became the first state in India to introduce a specialized ‘Elderly Budget’ document alongside the main budget to address the needs of senior citizens.
Key Points:
- Key Pillars of the Elderly Budget: The state has earmarked specific funds and policy frameworks to address the geriatric demographic shift:
- Financial Security: Social security pensions have been increased to ₹2,000 per month, benefiting over 60 lakh individuals.
- Total allocation for social security and welfare fund pensions stands at ₹14,500 crore.
- Health & Geriatric Care:
- Menopause Clinics: Established in district hospitals with an initial outlay of ₹3 crore.
- Insurance for the 'Missing Middle': A ₹50 crore allocation for a health insurance scheme targeting families above the poverty line who are not covered by existing schemes.
- Palliative Care: Enhanced funding for the community-based palliative care network, a hallmark of the Kerala health model.
- Housing & Infrastructure:
- Retirement Homes: ₹30 crore allocated to subsidize the construction of modern retirement homes by private and cooperative sectors.
- Elderly Friendly Cities: Special grants for local bodies to create "age-friendly" public infrastructure, including parks and walkways.
- The Care Economy:
- On-Call Volunteer Services: ₹10 crore to develop a digital platform and cadre of volunteers to assist the elderly living alone with daily chores and medical visits.
- Vayomithram Scheme: Expanded to all municipal and panchayat wards to provide free medicines and check-ups at the doorstep.
- Significance: Kerala’s elderly population is among the highest in India, creating pressure on health, social security and caregiving systems.
- The Elderly Budget represents a proactive policy response to demographic reality rather than reactive welfare spending.
