Union Budget 2026–27 Gives Major Push to Healthcare, MoHFW Allocation Rises to ₹1.06 Lakh Crore

New Delhi: The Union Budget 2026–27 has placed the health sector at the centre of India’s development agenda, with a sharp increase in allocations and a wide-ranging reform roadmap aimed at building a resilient, inclusive and future-ready healthcare system. Presenting the Budget in Parliament, Union Finance Minister Nirmala Sitharaman reaffirmed the Government’s commitment to universal health coverage, affordable care and innovation-driven growth under the leadership of Prime Minister Shri Narendra Modi.

The allocation for the Ministry of Health & Family Welfare (MoHFW) has been raised to ₹1,06,530.42 crore, marking an increase of nearly 10 per cent over the Revised Estimates of FY 2025–26. Compared to FY 2014–15, public spending on health has seen a cumulative rise of over 194 per cent, translating into an additional ₹70,349.75 crore, underlining the sustained policy focus on healthcare expansion and reform.

Key health programmes have received significant financial strengthening. The allocation for Pradhan Mantri Jan Arogya Yojana (PM-JAY) has been increased to ₹9,500 crore, up by ₹500 crore, to expand coverage and improve service delivery. The National Health Mission (NHM) has been allotted ₹39,390 crore, reflecting a 6.17 per cent rise, to further strengthen primary healthcare, maternal and child health services, and disease control initiatives across States and Union Territories.

A major boost has been provided to healthcare infrastructure under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), with an allocation of ₹4,770 crore—a sharp 67.66 per cent increase over the previous year. This will support the expansion of critical care blocks, integrated public health laboratories, district and sub-district hospitals, and other essential facilities.

The Budget places strong emphasis on medical education and tertiary care infrastructure. Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), including the establishment of new AIIMS, the allocation has been raised to ₹11,307 crore. This will aid the construction and operationalisation of AIIMS and the upgradation of government medical colleges.

Since 2014, 22 AIIMS have been approved, of which 18 are fully functional, significantly expanding access to world-class tertiary healthcare, particularly in underserved regions. The Budget also provides for a substantial increase in MBBS, postgraduate, super-speciality and nursing seats, strengthening India’s healthcare workforce and research capacity.

Public health programmes have also received enhanced support. The allocation for the National AIDS and STD Control Programme has been increased to ₹3,477 crore, a rise of over 30 per cent, including higher funding for blood transfusion services to improve safety and availability nationwide.

To advance medical research, the allocation for the Indian Council of Medical Research (ICMR) has been raised to ₹4,000 crore, marking a nearly 27 per cent increase. The Ayushman Bharat Digital Mission has been allotted ₹350 crore to expand digital health records, interoperability frameworks and telemedicine services.

Recognising the rising burden of non-communicable diseases and the needs of an ageing population, the Budget proposes a ₹980 crore phased outlay over three years to strengthen education for allied and healthcare professionals. This initiative aims to create nearly one lakh skilled professionals and train 1.5 lakh geriatric caregivers, positioning India as a global hub for allied healthcare talent.

In a major push for advanced therapeutics, the Budget announces the launch of ‘Bio Pharma Shakti’, with a dedicated outlay of ₹10,000 crore over five years, to strengthen domestic production of biologics and biosimilars. The initiative will be supported by new and upgraded NIPERs and a nationwide network of 1,000 accredited clinical trial sites.

Providing relief to patients, especially those undergoing cancer treatment, the Budget proposes full customs duty exemption on 17 life-saving drugs and extends duty-free imports for medicines used in seven additional rare diseases.

The Budget also prioritises mental healthcare and emergency services, proposing the upgradation of premier mental health institutions at Ranchi and Tezpur, the establishment of a NIMHANS in North India, and Emergency and Trauma Care Centres in every district hospital to ensure 24×7 access to critical care.

Overall, the Union Budget 2026–27 signals a decisive step towards transforming India’s healthcare ecosystem—combining higher public investment, infrastructure expansion, workforce development, digital innovation and patient-centric reforms—firmly aligned with the vision of Viksit Bharat@2047.