India’s Budget and the Impact Sector: A Comparative Journey from 2014 to 2025

India’s Union Budgets have increasingly prioritized the impact sector, with growing investments in social welfare, rural development, healthcare, and financial inclusion. Over the years, budgetary allocations have shifted from basic infrastructure and poverty alleviation to technology-driven solutions, employment generation, and social justice programs.

In 2014-15, the government prioritized basic infrastructure and sanitation, launching Swachh Bharat Mission with an allocation of ₹62,009 crore over five years. Simultaneously, Pradhan Mantri Jan Dhan Yojana (PMJDY) was introduced to improve financial inclusion, bringing millions into the formal banking system.

By 2016-17, the focus shifted towards rural development and financial security, with the highest-ever allocation (₹38,500 crore) to MGNREGA at the time. The government also strengthened Pradhan Mantri Awas Yojana (PMAY), setting an ambitious target of building two crore rural houses by 2022 to improve housing for low-income families.

From 2018-19, the government expanded its focus to healthcare and farmer welfare. Ayushman Bharat, launched with an initial fund of ₹10,000 crore, became one of the world’s largest healthcare initiatives, covering 500 million people. To support small and marginal farmers, PM-Kisan was introduced, ensuring direct income support of ₹6,000 per year to improve their financial resilience.

In 2020-21, the government had to divert focus toward COVID-19 relief and economic stimulus. A total of ₹64,180 crore was allocated for the Atmanirbhar Health Yojana, which strengthened healthcare infrastructure and pandemic response. To counter economic slowdowns, ₹1.97 lakh crore was allocated to the Production Linked Incentive (PLI) scheme, encouraging job creation across industries.

By 2022-23, India's digital economy and social equity took center stage. The budget allocated ₹48,000 crore for PMAY (both urban and rural) to sustain housing support for low-income groups. To enhance youth employment, ₹2,700 crore was allocated for Skill India Mission, ensuring workforce preparedness for emerging job markets.

The 2025-26 Union Budget marks a significant shift towards social justice and inclusive growth. The Department of Social Justice and Empowerment received ₹13,611 crore, a 35.75% increase over the previous year, with major allocations including ₹2,190 crore for PM Young Achievers Scholarship Award Scheme (PM YASASVI) and ₹1,275 crore for disability welfare. Rural infrastructure investment crossed ₹2.66 lakh crore, supporting roads, education, and economic upliftment. Healthcare received ₹98,311 crore, with funding for 200 daycare cancer centers and 10,000 new medical seats, addressing India's growing healthcare needs.

Over the past decade, India’s Union Budgets have consistently prioritized the impact sector, with increased investments in rural development, social justice, and healthcare. The 2025-26 budget marks a historic rise in impact-driven policies, ensuring that marginalized communities receive more direct support than ever before.

As CSR initiatives, NGO funding, and social impact investments grow, India's budgetary focus on sustainable development is likely to shape the country’s future, bridging the gap between policy and grassroots change.