- Union Budget 2026-27 allocates INR 1.06 lakh crore to Health Ministry, a 10% increase.
- Pradhan Mantri Ayushman Bharat Health Infrastructure Mission funding rises nearly 68%.
- National Health Mission gets Rs 39,390 crore to boost primary healthcare and disease control.
Raising the allocation for the Ministry of Health and Family Welfare to INR 1.06 lakh crore, the Union Budget 2026-27 has increased by 10 per cent over last year's revised estimates. Funding for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission has been increased sharply by nearly 68 per cent to Rs 4,770 crore. The funds will be used to build critical care blocks, public health laboratories, and upgrade district and sub-district hospitals across states. Flagship health schemes have also seen incremental increases. The National Health Mission has been allocated Rs 39,390 crore, aimed at strengthening primary healthcare, maternal and child health services, and disease control programmes. Ayushman Bharat's health insurance scheme has received Rs 9,500 crore to support hospital networks and service delivery.
Medical education and tertiary care remain key priorities. The Pradhan Mantri Swasthya Suraksha Yojana, which supports AIIMS and government medical colleges, has been allocated Rs 11,307 crore. The Budget proposes expansion of undergraduate, postgraduate, and nursing seats, along with investments in super-speciality blocks, trauma centres and advanced treatment facilities.
Public health programmes have received targeted support. Allocation for the National AIDS and STD Control Programme has been raised by over 30 per cent to Rs 3,477 crore, with additional funding earmarked for blood transfusion services to improve safety and availability nationwide.
Medical research spending has also gone up. The Department of Health Research has been allocated over Rs 4,800 crore, while funding for the Indian Council of Medical Research has risen to Rs 4,000 crore, nearly 27 per cent higher than last year.
The Budget also announces a Rs 10,000-crore 'Bio Pharma Shakti' initiative over five years to promote domestic production of biologics and biosimilars, strengthen clinical research, and reduce import dependence. Plans include expanding pharmaceutical education institutes and setting up a national network of clinical trial sites.
To address workforce shortages, the government has proposed a multi-year plan to expand allied health education, aiming to train nearly one lakh professionals and 1.5 lakh geriatric caregivers.
The Budget also promises round-the-clock emergency and trauma care in every district hospital and cuts customs duty on several cancer and rare disease drugs to ease treatment costs.
In relief for patients, the government has announced full customs duty exemption on 17 life-saving drugs, including those used for cancer treatment. Import duty exemptions have also been extended to medicines for seven additional rare diseases, a move expected to reduce out-of-pocket expenses for affected families.
Mental healthcare has found a place in the Budget as well, with plans to upgrade institutions in Ranchi and Tezpur and establish a NIMHANS-like centre in North India. Trauma and emergency care centres are proposed in all district hospitals to ensure 24 by 7 access to critical medical services.
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