Published Feb 01, 2026 | 2:55 PM ⚊ Updated Feb 01, 2026 | 2:55 PM
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Synopsis: The budget for healthcare marks an increase of ₹5,751.34 crore over the 2025-2026 estimate of ₹95,957.87 crore. Compared to the actual expenditure of ₹87,300.17 crore in 2024-2025, spending has risen by ₹14,409.04 crore over two years.
The Ministry of Health and Family Welfare will receive ₹101,709.21 crore in 2026-2027, breaching the ₹1 lakh crore mark for the first time.
This allocation represents 1.96% of the total national expenditure of ₹53,47,315 crore.
The budget marks an increase of ₹5,751.34 crore over the 2025-2026 estimate of ₹95,957.87 crore. Compared to the actual expenditure of ₹87,300.17 crore in 2024-2025, spending has risen by ₹14,409.04 crore over two years.
Revenue expenditure accounts for ₹98,780.91 crore, covering salaries, medicines, and scheme operations. Capital expenditure stands at ₹2,928.30 crore, down from ₹3,624.44 crore in the previous budget estimate.
The decline in capital spending indicates a shift from infrastructure construction to operational expenditure. The government now focuses on running facilities rather than building them.
In the financial year 2021-22, the health budget was estimated at ₹1.08 lakh crore, but it was the peak Covid-19 time, when an estimated ₹35,000 crore was earmarked for preventive vaccinations.
After that, it fell to ₹86,200 crore, nearly 21% lower than the previous year, and even this year’s budget has not reached the 2021 budget for health.
The National Health Policy 2017 committed to raising public health expenditure from 1.15% of GDP to 2.5% by 2025. The target has not been achieved.
India spent 0.29% of GDP on health in 2025-26 according to Budget Estimates. This represents a decline from 0.37% of GDP in 2020-21. After adjusting for inflation, the 2025-26 health allocation stands 4.7% lower than actual spending in 2020-21.
The share of health in the total Union Budget fell from 2.26% to 2.05% between 2020-21 and 2025-26. State governments drove most of the spending increase during the pandemic, not the Union government.
The National Health Mission receives ₹39,390 crore, making it the largest recipient. The mission transfers resources to states and union territories for primary health centres, staff salaries, and medicine procurement.
The Flexible Pool for Reproductive and Child Health accounts for ₹31,820 crore within this mission. States use these funds to create Project Implementation Plans for vulnerable populations.
Ayushman Bharat receives ₹9,500 crore. The scheme covers 12 crore families, 4.5 crore senior citizens, and 37 lakh ASHAs and Anganwadi workers. Each family receives health cover of ₹5 lakh per year for hospitalisation.
The Department of Health Research gets ₹4,000 crore for trials, research, and lab testing.
Twenty-two new AIIMS received approval in previous budgets. AIIMS Gorakhpur, Nagpur, and Kalyani now operate. AIIMS Madurai and Rewari remain under construction.
The budget for establishing new AIIMS stands at ₹9,302 crore, down from ₹9,400 crore in revised estimates for 2025-2026. The reduction reflects the transition from construction to operation.
AIIMS New Delhi receives ₹5,500.92 crore. The Post Graduate Institute of Medical Education and Research in Chandigarh gets ₹2,504.65 crore.
The Pradhan Mantri Swasthya Suraksha Yojana allocation dropped to ₹2,005 crore from ₹2,200 crore. This scheme funds new AIIMS and upgrades government medical colleges.
The Scheme for Allied Health Care Professionals receives ₹1,000 crore. This allocation supports training for lab technicians, physiotherapists, and radiographers.
Human Resources for Health and Medical Education gets ₹1,725 crore. The funds establish medical colleges by upgrading district hospitals and increasing undergraduate and postgraduate seats.
The National Digital Health Mission receives ₹350 crore to link patient records across hospitals through databases and applications.
The Global Fund Grant under Covid-19 Response Mechanism dropped from ₹355.07 crore to ₹96.86 crore. Oxygen plants and ambulances purchased for emergency response now operate at reduced capacity.
The Development of Nursing Services receives ₹27.24 crore, down from ₹28.74 crore. The Regional Institute of Paramedical and Nursing Sciences in Aizawl saw its budget cut from ₹135 crore to ₹85.90 crore.
Infrastructure Maintenance receives ₹7,350 crore. This pays salaries at sub-centres and family welfare centres and funds training schools for Auxiliary Nurse Midwives.
The National Tele Mental Health Programme receives ₹51.14 crore to provide counselling services across all states and union territories. NIMHANS in Bengaluru gets ₹917.21 crore for treatment, research, and training.
The National AIDS and STD Control Programme receives ₹3,477 crore in its fifth phase running from 2021 to 2026. Over 840 Anti-retroviral Treatment centres and thousands of integrated counselling and testing centres operate under this programme.
Family Welfare Schemes get ₹643.46 crore for contraceptives, training, and research. The National Pharmacovigilance Programme receives ₹10 crore for drug safety monitoring. The National Organ Transplant Programme operates with ₹15 crore.
The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission receives over ₹4,770 crore across central and state sectors. The mission builds capacity at primary, secondary, and tertiary levels to prepare the health system for disasters.
Health Sector Disaster Preparedness and Response gets ₹95 crore for handling chemical, biological, and nuclear disasters.
International Cooperation receives ₹101.56 crore, including contributions to the World Health Organisation and the International Committee on Red Cross.
Responding to the allocation for health in the Union Budget 2026-27, public health specialist Dr Sharath Chandra B said the ₹1.04 lakh crore earmarked was considerably less than the hikes given in past three years.
“The deserving push for strengthening of Ayush and its integration is heartwarming,” he told South First.
Dr Chandra felt the steps initiated to capitalise the opportunity of putting India as a top medical tourism hub were much-needed and progressive step.
However, he was disappointed with the budget for ignoring health promotion, preventive care, chronic pain management, and non-communicable diseases. “Pharmacological research and system reforms should have been addressed appropriately,” he opined.
(Edited by Majnu Babu).
