New Delhi: The Union Budget 2026-27 has given significant priority to the health sector by allocating ₹1,06,530.42 crore to the Ministry of Health and Family Welfare. This allocation marks an increase of nearly 10 percent compared to the revised estimates of the financial year 2025-26.
This rise represents a total growth of over 194 percent in the health budget over the past 12 years, with an additional investment of ₹70,349.75 crore since 2014-15. Finance Minister Nirmala Sitharaman, while presenting the budget in Parliament, emphasized transforming the healthcare ecosystem, achieving universal health coverage, and promoting inclusive development.
Key schemes have received enhanced funding. The Prime Minister Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) allocation has increased by 67.66 percent, reaching ₹4,770 crore. This includes ₹570 crore for the central sector component and ₹4,200 crore for capital expenditure under the centrally sponsored scheme. These funds will support the expansion of critical care blocks, integrated public health laboratories, and district and sub-district hospitals.
The Prime Minister’s Health Security Scheme (PMSSY) received an allocation of ₹11,307 crore, which is ₹407 crore (3.73 percent) higher than the previous revised estimate. This budget will enable the establishment of new AIIMS institutions, operation of existing ones, and upgrading government medical colleges.
Funding for the National AIDS and STD Control Programme (NACO) increased by 30.64 percent to ₹3,477 crore, including ₹275 crore for blood transfusion services, a 37.50 percent rise. This aims to strengthen blood safety, availability, and quality standards. The Department of Health Research (DHR) saw its allocation rise by 24 percent to over ₹4,821.21 crore, boosting medical research and innovation.
The budget also launched a ₹10,000 crore national initiative called ‘Bio Pharma Strength’ to promote biologics, biosimilars, and pharmaceutical research. The scientific capability of the CDSCO will be enhanced to strengthen the drug regulatory framework. Focus has been placed on allied health professionals (AHP) and regional medical centres, with a goal to train 1.5 lakh caregivers. Trauma centres will be established in every district hospital to ensure 24×7 emergency care.
Reduction in customs duties on medicines for cancer and rare diseases will help lower treatment costs and out-of-pocket expenses. The Prime Minister Jan Arogya Yojana (PM-JAY) was allocated ₹9,500 crore, and the National Health Mission (NHM) received ₹39,390 crore to strengthen primary healthcare, maternal and child health, and disease control.
This budget is a strong step towards achieving the ‘Developed India’ vision under Prime Minister Narendra Modi’s leadership, focusing on infrastructure, research, skilled human resources, and affordable healthcare services.
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