Kerala is growing old faster than any other state in India. With nearly 19% residents aged 60 and above, the state has already crossed demographic thresholds that most of the country will reach years later. Once celebrated for its gains in health and education, the state is now confronting the next phase of that success: how to support an ageing society without shrinking economic vitality.
Kerala’s senior citizens now account for 18.7% of its total population. In its 2026-27 Budget, the state government has placed a sharp focus on the care economy and the silver economy to address its rapidly changing demographic profile. In a first for the country, Kerala has also presented a dedicated Elderly Budget document alongside the main Budget.
Kerala’s changing age demographics
Presenting the Budget in the Assembly, Finance Minister KN Balagopal said the government views geriatric care and elderly welfare as a core pillar of Kerala’s socio-economic strategy. He pointed out that the state is witnessing a steady rise in the elderly population alongside a decline in the youth cohort.
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Kerala’s median age is now around 37 years, significantly higher than that of younger states such as Bihar, where it is about 23. Along with Tamil Nadu, Kerala falls under the category of an “ageing state”, defined as one where at least 15% of the population is aged 60 and above.
What is included in elderly budget?
One of the key structural changes announced in the Budget is the inclusion of the proportion of senior citizens and the level of urbanisation as new criteria for the devolution of funds to local self-government institutions. The move is expected to enable panchayats and municipalities to design more targeted programmes and services that respond to the specific needs of ageing populations, particularly in districts with a higher concentration of elderly residents.
A major highlight of the Budget is the decision to constitute an Elderly Commission and present a separate Elderly Budget. Both are aimed at ensuring focused policy intervention, monitoring and long-term planning for senior citizens. “Our state is facing a significant demographic change with an increase of elderly population. In this context, the care economy and the silver economy are imperative so far as Kerala is concerned,” Balagopal said.
The Budget has earmarked Rs 30 crore as subsidies for organisations and groups to set up retirement homes across the state, and Rs 10 crore for on-call volunteer services for elderly persons living alone. These facilities are expected to offer community kitchens, recreational and entertainment spaces and integrated healthcare systems supported by trained health volunteers.
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To mitigate health risks among senior citizens, the government has announced a special pneumococcal vaccination drive for elderly persons aged 60 and above from below-poverty-line families, with an allocation of Rs 50 crore.
Benefits revised in Aswasakiranam scheme
The Aswasakiranam scheme, which provides financial assistance to caregivers of bedridden patients and the elderly, has been strengthened significantly. Monthly assistance has been increased from Rs 600 to Rs 1,000, while the total allocation has been doubled to Rs 100 crore. In addition, social security and welfare board pensions, which support a large section of the elderly population, have been enhanced to Rs 2,000 per month, with Rs 14,500 crore allocated for welfare pensions in 2026-27. |
