Union Health Budget 2026–27: Key Highlights & Analysis

The Union Budget 2026–27 accords strong priority to the health sector, marking a decisive step towards building a resilient, inclusive and future-ready healthcare system in line with the vision of Viksit Bharat@2047.

Overall Allocation & Long-Term Trend

• ₹1,06,530.42 crore allocated to the Ministry of Health & Family Welfare (MoHFW)

• ~10% increase over Revised Estimates (RE) of FY 2025–26

• 194% cumulative growth in health budget over the last 12 years (since FY 2014–15)

• Department of Health Research (DHR): ₹4,821 crore (+24%)

This sustained rise highlights the Government’s commitment to universal health coverage, infrastructure expansion, medical education, and research innovation.

Major Scheme-Wise Allocations

1. Ayushman Bharat – PMJAY

• ₹9,500 crore allocated

• 5.56% increase over RE 2025–26

• Focus: expanded beneficiary coverage, hospital empanelment & service quality

2. National Health Mission (NHM)

• ₹39,390 crore

• 6.17% increase

• Strengthening primary healthcare, MCH services, and disease control

3. PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)

• ₹4,770 crore allocation

• Massive 67.66% jump over RE 2025–26

• Focus areas:

  • Critical care blocks

  • Integrated public health labs

  • District & sub-district hospitals

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Medical Education & Infrastructure Expansion

PM Swasthya Suraksha Yojana (PMSSY)

• ₹11,307 crore allocated

• Supports:

  • New AIIMS

  • Operationalisation of existing AIIMS

  • Upgradation of Government Medical Colleges

AIIMS Progress

• 22 AIIMS approved

• 18 fully functional

• MBBS & nursing seats more than doubled since 2014

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Public Health & Disease Control

National AIDS & STD Control Programme (NACO)

• ₹3,477 crore (+30.64%)

• Blood Transfusion Services: ₹275 crore (+37.5%)

Mental Health

• Upgradation of mental health institutes at Ranchi & Tezpur

• Establishment of NIMHANS-like institute in North India

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Human Resources for Health

• ₹1,725 crore for medical & nursing education

• ₹980 crore (3-year plan) for allied health education

  • 10 Allied Health Institutes

  • 1 lakh professionals in 5 years

  • 1.5 lakh geriatric caregivers to address ageing population needs

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Digital Health Push

• Ayushman Bharat Digital Mission: ₹350 crore (+7.94%)

• Expansion of:

  • Digital health IDs

  • Interoperable EHRs

  • Telemedicine & hospital IT systems

Scheme	RE 2025–26	BE 2026–27	% Change	Key Focus
PM-JAY	9,000	9,500	+5.56%	Financial protection
NHM	37,100	39,390	+6.17%	Primary healthcare
PM-ABHIM	2,845	4,770	+67.66%	Health infrastructure
PMSSY + AIIMS	10,900	11,307	+3.73%	AIIMS & GMC upgradation
NACO	2,661.5	3,477	+30.64%	HIV, Blood services

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Medical Research & Innovation

ICMR

• ₹4,000 crore allocation

• ~27% increase over RE 2025–26

‘Bio Pharma Shakti’ Initiative

• ₹10,000 crore (5-year outlay)

• Objectives:

  • Boost biologics & biosimilars

  • Reduce import dependence

  • Strengthen India as a global biopharma hub

• Key components:

  • 3 new NIPERs + 7 upgraded

  • 1,000 accredited clinical trial sites

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Drug Regulation & Patient Relief

• Strengthening CDSCO scientific capacity

• Customs duty exemption:

  • 17 life-saving cancer drugs

  • 7 additional rare diseases (personal imports)

• Direct impact: Reduced out-of-pocket expenditure

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Emergency & Trauma Care

• 24×7 Emergency & Trauma Centres in every district hospital

• Ensures affordable, timely emergency care nationwide

The Union Health Budget 2026–27 reflects a strong reformist intent, with enhanced allocations for infrastructure, medical education, research, and digital health. However, while the budget demonstrates scale and ambition, key structural and implementation challenges remain that must be addressed to achieve universal, equitable, and quality healthcare.

Key Concerns & Limitations

1. Public Health Spending Still Below Global Benchmarks

• India’s total public health expenditure remains ~2% of GDP, below WHO-recommended 3–5%.

• Incremental increases may not match rising disease burden and inflation.

Concern: Quantity of allocation may not translate into quality outcomes.

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2. Primary Healthcare & Preventive Care Still Under-emphasised

• NHM increase is modest compared to tertiary infrastructure growth.

• Limited explicit focus on:

  • Urban health

  • Mental health at primary level

  • NCD prevention and lifestyle interventions

Concern: Risk of hospital-centric rather importing curative bias.

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3. Regional & Inter-State Disparities

• AIIMS and tertiary institutions often under-utilised due to:

  • Faculty shortages

  • Poor referral linkages

• States with weak health governance may fail to absorb increased funds.

Concern: “Infrastructure without integration” may widen regional inequities.

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4. Human Resource Quality vs Quantity Gap

• Rapid seat expansion without proportional:

  • Faculty development

  • Clinical exposure

  • Accreditation reforms

Concern: Risk of producing under-trained manpower affecting quality of care.

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5. Digital Health: Implementation & Privacy Challenges

• ABDM expansion faces issues of:

  • Interoperability

  • Data privacy

  • Digital divide (rural, elderly)

Concern: Technology-led exclusion if governance frameworks lag.

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Way Forward:

1. Increase Health Spending to 3% of GDP in a Time-Bound Manner

• Gradual escalation through:

  • Health cess earmarking

  • Outcome-based budget allocation

• Align spending with National Health Policy 2017 targets.

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2. Rebalance Healthcare Towards Primary & Preventive Care

• Strengthen Health & Wellness Centres with:

  • NCD screening

  • Mental health services

  • Nutrition and lifestyle counselling

• Incentivise preventive outcomes rather than hospital admissions.

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3. Strengthen Cooperative Federalism in Health

• Performance-linked grants to states.

• Capacity-building for state health departments in planning & execution.

• Strengthen district health governance & referral systems.

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4. Focus on Quality of Medical Education

• National faculty development mission.

• Mandatory simulation-based training.

• Independent accreditation & outcome-based evaluation of institutions.

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5. Ethical, Secure & Inclusive Digital Health Ecosystem

• Strong data protection legislation.

• Offline & assisted digital access models.

• Capacity-building of frontline health workers in digital tools.

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6. Integrate Research with Public Health Needs

• Mission-mode research on:

  • NCDs

  • Climate-sensitive diseases

  • Geriatrics & mental health

• Promote public–private–academic collaboration with outcome accountability.