Social Sector Expenditure refers to the portion of government spending allocated to sectors that directly impact human development and social welfare. This includes expenditure on education, health, nutrition, water supply and sanitation, housing, employment, social security, and welfare of marginalized groups such as women, children, the elderly, Scheduled Castes (SCs), and Scheduled Tribes (STs). Both central and state governments contribute to social sector spending through various schemes and programs.

Social sector expenditure is critical for promoting inclusive and equitable development. It helps improve the quality of life, enhances human capital, and reduces poverty and inequality. Investments in health and education, for instance, lead to a more productive workforce and foster long-term economic growth. Programs like PM Poshan, Ayushman Bharat, MGNREGA, and PM Awas Yojana are examples of initiatives that drive social sector outcomes in India. This expenditure also plays a pivotal role in achieving the Sustainable Development Goals (SDGs), particularly those related to health, education, gender equality, and reduced inequalities. In a diverse and populous country like India, increasing and efficiently utilizing social sector spending is essential for ensuring social justice, empowerment of disadvantaged groups, and building a resilient, inclusive economy that leaves no one behind.