Budget 2026-27 for the social sector is unusual, as it does not contain any new flagship schemes, which had become par for the course. The largest declines are in Urban Development (41%), Rural Development (20%), Development of the North-East (24%), and Social Welfare (17%). Shifting the burdenA trend in the social sector that Budget 2026-27 consolidates is that spending on welfare is increasingly in the domain of State governments. Therefore, to get a true understanding of welfare spending in the country, a granular analysis of State budgets is required. The arena of welfare spending has now shifted to the States, while the Centre continues to drive the agenda by legislating and setting norms.

Source: The Hindu February 01, 2026 19:43 UTC