According to reports from Business Standard, Jharkhand leads with 54.8% of its budget allocated to social sectors, followed by West Bengal at 54.2%, Delhi at 54.1%, Chhattisgarh at 50.3%, and Bihar at 49.8% for FY26. These states significantly outpace the all-state average of 42.2%. However, outcomes from high budgetary allocations remain mixed, with Bihar recording the highest poverty headcount ratio at 33.8% and the highest multidimensional poverty index of 0.16. Nearly two-thirds of pregnant women in Jharkhand are anaemic, while Chhattisgarh has the highest maternal mortality ratio at 146 deaths per 100,000 live births.
As reported by Business Standard, Punjab allocates the lowest 21.3% of its budget to social sectors, while Kerala and Tamil Nadu allocate 32.2% and 33.6% respectively. Despite their lower spending shares, Kerala records the lowest maternal mortality ratio at 30 deaths per 100,000 live births and has almost eliminated multidimensional poverty. Tamil Nadu performs similarly well with a maternal mortality ratio of 35, poverty headcount ratio of just 2.2%, and female labour force participation rate of 38.8%. Anaemia among pregnant women in Kerala stands at 31.4%, less than half the national average.
According to Business Standard analysis, Jharkhand allocates the highest 35.5% of its budget towards women-focused schemes, followed by West Bengal at 26.3% and Tamil Nadu at 29.8%. Kerala allocates 21.4% of its budget to women-centric programmes, well above the national average of 9.4%. The data reveals that Delhi's female labour force participation of 10.4% is the lowest among all states analysed, despite being a large social sector spender. Women's welfare spending adds another layer to the story, with high gender budgeting not confined to the biggest overall social spenders.
As reported by Business Standard, the contrast between high spenders and top performers reflects different development stages. Bihar, Jharkhand and Chhattisgarh are poor and have large populations, requiring sustained spending on health, education, nutrition and welfare. By contrast, Kerala and Tamil Nadu are further ahead in their development journeys, with decades of steady investments in public health, education and social infrastructure delivering strong outcomes. The data suggests that budget shares alone cannot measure a state's commitment to welfare, with higher spending often signaling the magnitude of challenges remaining, while lower spending can reflect historical gains achieved.
