OOPE declines, school enrollments rise as social expenditure surges

An increase in social services expenditure (SSE) — on the rise since 2016-17 — has not only reduced out of pocket expenditure (OOPE) for health care, but has also led to better school enrollment and a slide in dropout rate, highlighted the latest Economic Survey.

- SANKET KOUL

The SSE as a percentage of total expenditure (TE) has increased from 23.3 per cent in FY21 to 26.2 per cent in FY25 (Budget Estimates), growing at a compound annual growth rate (CAGR) of 15 per cent. As part of SSE, the health expenditure grew from ₹3.2 trillion in FY21 to ₹6.1 trillion in FY25BE at a CAGR of 18 per cent, while expenditure on education grew at a CAGR of 12 per cent from ₹5.8 trillion in FY21 to ₹9.2 trillion in FY25BE.