India’s First ‘Elderly Budget’ in Kerala | 10 Feb 2026

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.