This paper focuses on the correlation between social sector expenditure & PCI and IMR since Ninth Five Year Plan. At the present day world, globalisation, liberalisation, privatisation and marketization has changed the approach of the economic development. UNDP says that the people are the real wealth of a nation. Thus, the importance of the social sector development is increasing day by day. Although, social sector outlay of the General Government has become double from Ninth Five Year Plan to Eleventh Five Year Plan. But there is discrepancy in the allocation of funds among various components of the social sector. Health and education are the main component of the social sector development. The public outlay is far from satisfactory for health sector in India. Private sector expenditure is more in the health sector to that of public sector in India.