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Union Budget 2026-27: Rs 1.06 lakh crore to Health Ministry, 194 percent increase in last 12 years

by Vaidehi Verma
February 1, 2026
in Health
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Union Budget 2026-27: Rs 1.06 lakh crore to Health Ministry, 194 percent increase in last 12 years
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New Delhi, February 1 (IANS). Giving priority to the health sector in the Union Budget 2026-27, an allocation of Rs 1,06,530.42 crore has been made for the Ministry of Health and Family Welfare, which is about 10 percent more than the Revised Estimates for FY 2025-26.

This increase represents an overall increase of over 194 per cent in the health budget over the last 12 years, representing an additional investment of Rs 70,349.75 crore over 2014-15. The budget presented in Parliament by Finance Minister Nirmala Sitharaman has a strong focus on transformation of the healthcare ecosystem, universal health coverage and inclusive growth.

Major schemes have been promoted in the budget. Allocation for the Prime Minister Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) has increased by 67.66 per cent to Rs 4,770 crore, which includes Rs 570 crore under the Central Sector Component and Rs 4,200 crore as capital expenditure under the Centrally Sponsored Scheme. This is important for the expansion of critical care blocks, integrated public health laboratories and district and sub-district hospitals.

Allocation under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) increased to Rs 11,307 crore, which is Rs 407 crore (3.73 per cent) more than the previous revised estimate. This will make establishment of new AIIMS, operation of existing institutions and upgradation of government medical colleges possible.

Allocation for the National AIDS and STD Control Program (NACO) increased by 30.64 per cent to Rs 3,477 crore, with a provision of Rs 275 crore (37.50 per cent increase) for blood transfusion services. This will strengthen blood safety, availability and quality standards. Allocation for the Department of Health Research (DHR) increased by 24 per cent to over Rs 4,821.21 crore, which will boost medical research and innovation.

The Budget also launched a Rs 10,000 crore national initiative called ‘Bio Pharma Shakti’, which will encourage biologics, biosimilars and pharma research. The drug regulation framework will be strengthened by enhancing the scientific capacity of CDSCO. The focus is on creation of Allied Health Professionals (AHPs) and regional medical centres, with a target to train 1.5 lakh caregivers. Trauma centers will be set up in every district hospital, which will ensure 24×7 emergency care.

Reduction in customs duty on cancer and rare disease drugs will reduce treatment costs and out-of-pocket expenses. Allocation has been increased by Rs 9,500 crore for Pradhan Mantri Jan Arogya Yojana (PM-JAY) and Rs 39,390 crore for National Health Mission (NHM), which will strengthen primary healthcare, maternal-child health and disease control.

This budget is a strong step towards realizing the goal of ‘Developed India’ under the leadership of Prime Minister Narendra Modi through health, which focuses on infrastructure, research, skilled human resources and affordable healthcare.

–IANS

SCH

Tags: health/medicalIANSNationalPolitics

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