The Union Budget 2026-27 on Sunday significantly enhanced healthcare spending, with the government allocating ₹1,05,530.42 crore to the Ministry of Health and Family Welfare — an increase of 8.96 per cent over the Revised Estimates of FY 2025-26.
Presenting her ninth consecutive Union Budget in Parliament, Finance Minister Nirmala Sitharaman outlined a comprehensive roadmap for healthcare reforms, reaffirming the government's commitment to universal health coverage, medical infrastructure expansion, and inclusive growth.
According to an official statement from the Ministry, the enhanced allocation — including ₹4,821.21 crore for the Department of Health Research (DHR) — reflects a cumulative increase of over 176 per cent compared to FY 2014-15, translating into an additional ₹63,677.89 crore over the last decade.
The scheme component under the Health Ministry has been raised by ₹6,175.96 crore (10.78 per cent), while the non-scheme component increased by ₹2,500.96 crore (6.32 per cent).
Boost for flagship health schemes
The allocation for Pradhan Mantri Jan Arogya Yojana (PM-JAY) has been increased to ₹9,500 crore, up by ₹500 crore, aimed at expanding beneficiary coverage, improving service quality, and strengthening hospital networks.
Similarly, the National Health Mission (NHM) received an enhanced allocation of ₹39,390 crore, an increase of ₹2,289.93 crore, to strengthen primary healthcare delivery, maternal and child health services, and disease control across states and Union Territories.
Healthcare infrastructure also received a major push, with ₹4,770 crore allocated to the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).
Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), including new AIIMS establishments, the allocation for FY 2026-27 stands at ₹11,307 crore. This will support the construction of new AIIMS, operationalisation of existing institutions, and upgradation of government medical colleges.
Cancer, rare disease relief and mental health focus
In a major relief for patients, the government announced a waiver of basic customs duty on 17 cancer drugs and medicines. Additionally, seven rare diseases have been brought under duty exemption for personal imports of drugs, medicines, and specialised nutritional products.
Strengthening mental healthcare infrastructure, Sitharaman announced the establishment of NIMHANS-2 in North India, along with plans to upgrade National Mental Health Institutes in Ranchi and Tezpur. She also proposed a 50 per cent capacity increase in district hospitals through emergency and trauma care centres to improve access in rural areas.
Medical education, research and digital health
A phased outlay of ₹980 crore over three years has been allocated for expanding allied and healthcare professionals' education. The Human Resources for Health and Medical Education segment received ₹1,725 crore to support new medical colleges, seat expansion, and nursing education.
The Ayushman Bharat Digital Mission allocation has been increased to ₹350 crore to strengthen digital health records, telemedicine, and hospital information systems.
Medical research received a strong boost, with the Indian Council of Medical Research (ICMR) allocation raised to ₹4,000 crore — a 26.98 per cent increase over FY 2025-26.
(With inputs from IANS)
