The Union Budget 2026–27 has accorded paramount importance to the health sector, with enhanced budgetary allocations and focused policy interventions for the Ministry of Health & Family Welfare (MoHFW), aimed at accelerating the comprehensive transformation of India’s healthcare ecosystem.

Presenting the Union Budget in Parliament, the Hon’ble Finance Minister outlined a comprehensive roadmap for healthcare reforms, reinforcing the Government’s commitment to universal health coverage and inclusive growth under the leadership of Hon’ble Prime Minister Shri Narendra Modi.

The Union Budget 2026–27 marks a significant milestone in the Government’s ongoing efforts to strengthen India’s healthcare system, with a substantial enhancement in the allocation for the Ministry of Health & Family Welfare to ₹ 1,06,530.42 crores, reflecting an increase of nearly 10% over the Revised Estimates of FY 2025–26. This enhanced allocation, including strengthened financial support for the Department of Health Research (DHR) amounting to ₹ 4,821.21 crore, represents a cumulative increase of over 194 %, translating into an additional ₹ 70,349.75 crore compared to the health budget of FY 2014–15. The sustained rise in public expenditure underscores the Government’s unwavering commitment to expanding healthcare access, strengthening infrastructure, promoting medical research and innovation, and ensuring affordable and quality healthcare for all citizens. Also, the scheme component under the Ministry of Health & Family Welfare has been increased by ₹ 6,175.96 crore (10.78 %), while the non-scheme component has risen by ₹ 2,500.96 crore (6.32%) over the Revised Estimates of FY 2025–26.

Building on this enhanced financial outlay, the Union Budget 2026–27 provides significant scheme-wise enhancements across key flagship programmes of the Ministry of Health & Family Welfare, reflecting the Government’s sustained focus on strengthening healthcare access, infrastructure, service delivery, and human resource capacity. The allocation for the Pradhan Mantri Jan Arogya Yojana (PM-JAY) in BE 2026–27 has been increased to ₹ 9,500 crore, registering an increase of ₹ 500 crore, representing a 5.56% rise over the Revised Estimates of FY 2025–26, aimed at expanding beneficiary coverage, improving service quality, and strengthening hospital networks.

Similarly, the allocation for the National Health Mission (NHM) has been enhanced to ₹ 39,390.00 crore, reflecting an increase of ₹ 2,289.93 crore, marking a 6.17% rise over the Revised Estimates of FY 2025–26 of ₹ 37,100.07 crore, to further strengthen primary healthcare delivery, maternal and child health services, and disease control interventions across States and Union Territories.

A major thrust has also been accorded to healthcare infrastructure development under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), with an allocation of ₹ 4,770 crore in BE 2026–27, comprising ₹ 570 crore under the Central Sector component and ₹ 4,200 crore under the Centrally Sponsored Scheme component as capital expenditure. This represents an increase of ₹ 1925 crore, registering a 67.66% rise over the Revised Estimates of FY 2025–26 amounting to ₹ 2845 crore, aimed at expanding critical care blocks, integrated public health laboratories, district and sub-district hospitals, and other health infrastructure facilities.

The Union Budget 2026–27 accords strong priority to the upgradation and expansion of healthcare infrastructure and medical education. Major investments have been proposed for the modernisation and expansion of existing healthcare facilities, including establishment and strengthening of Cancer Centres, expansion of Trauma and Emergency Care Services, development of Super Specialty Blocks, Transplant Units, Robotic Surgery Centres, and AI-enabled Centres in medical institutions. The Budget also provides for a substantial increase in MBBS, postgraduate, super-specialty, and nursing seats, aimed at strengthening teaching, learning, and clinical training capacities, while promoting cutting-edge research and innovation in advanced biomedical fields, including artificial intelligence.

Furthermore, under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), including establishment expenses of new AIIMS, the total allocation for FY 2026–27 stands at ₹ 11307 crore, covering both PMSSY under the Central Sector Scheme and Establishment Expenses of New AIIMS under Other Central Expenditure, marking an increase of ₹ 407 crore, representing a 3.73% rise over the Revised Estimates of FY 2025–26 of ₹ 10,900 crore. This enhanced allocation will support the construction of new AIIMS, operationalisation of existing institutions, and the upgradation of Government Medical Colleges.

In the area of disease control and public health programmes, the allocation for the National AIDS and STD Control Programme has been increased to ₹ 3,477 crore in BE 2026–27, reflecting an enhancement of ₹ 815.50 crore, representing a 30.64% rise over the Revised Estimates of FY 2025–26 of ₹ 2,661.50 crore. This includes strengthened support for Blood Transfusion Services, with a provision of ₹ 275 crore, marking an increase of ₹ 75 crore, registering a 37.50% rise over the Revised Estimates of FY 2025–26 of ₹ 200 crore, aimed at improving blood safety, availability, and quality standards nationwide.

Recognising the growing healthcare demands arising from an ageing population, the rising burden of non-communicable diseases, and increasing global demand for skilled healthcare professionals, the Government has proposed a phased plan outlay of ₹ 980 crore over three years for the expansion and strengthening of allied and healthcare professionals’ education.

Under this initiative, Allied Health Professional Institutes in 10 key disciplines will be set up and upgraded to create nearly one lakh skilled professionals over the next five years, through public and private sector participation. Additionally, a focused programme will train 1.5 lakh geriatric caregivers, addressing the rapidly rising long-term care needs of India’s elderly population. These measures will enhance diagnostics, preventive, rehabilitative, and public health services while positioning India as a global hub for skilled allied healthcare professionals.

Further, the allocation for Human Resources for Health and Medical Education, including the establishment of new medical colleges, upgradation of undergraduate and postgraduate seats, and augmentation of nursing education, has been increased to ₹ 1,725 crore, representing a rise of ₹ 95 crore, registering a 5.83% increase over the Revised Estimates of FY 2025–26 of ₹ 1,630 crore, to strengthen healthcare workforce capacity.

To accelerate the digital transformation of healthcare delivery, the allocation for the Ayushman Bharat Digital Mission has been enhanced to ₹ 350 crore in BE 2026–27, reflecting an increase of ₹ 25.74 crore, marking a 7.94%  rise over the Revised Estimates of FY 2025–26 of ₹ 324.26  crore. This will enable the expansion of digital health records, interoperability frameworks, telemedicine services, and integrated hospital information systems, thereby ensuring seamless, efficient, and citizen-centric healthcare delivery across the country.

In addition to significant scheme-wise enhancements, the Union Budget 2026–27 also provides substantial increases under the Non-Scheme Component, aimed at strengthening premier healthcare institutions, improving service delivery, and meeting establishment and operational requirements. The allocation for AIIMS, New Delhi for FY 2026–27 has been enhanced to ₹ 5,500.92 crore, reflecting an increase of ₹ 262.22 crore, representing a 5.01% rise over the Revised Estimates of FY 2025–26, to support advanced tertiary care services, medical education, and cutting-edge research.

The allocation for the Central Government Health Scheme and Pensioners’ Other Retirement Benefits has been increased to ₹ 8697.86 crore in BE 2026–27, registering an enhancement of ₹ 590.90 crore, marking a 7.29% rise over the Revised Estimates of FY 2025–26, to ensure seamless healthcare services for serving and retired Central Government employees and pensioners. Further, the allocation for Central Hospitals has been raised to ₹ 4,599.66 crore, marking an increase of ₹ 392.82 crore, reflecting a 9.34% rise over the Revised Estimates of FY 2025–26 of ₹ 4,206.84 crore, to meet establishment-related expenses, support the operation of newly created infrastructure, and facilitate the upgradation and construction of hospital buildings.

The allocation for the Postgraduate Institute of Medical Education and Research, Chandigarh for FY 2026–27 has also been enhanced to ₹ 2,504.65 crore, reflecting an increase of ₹ 86.79  crore, marking a 3.59% rise over the Revised Estimates of FY 2025–26, to strengthen tertiary healthcare services, medical education, and advanced research facilities.

The Union Budget 2026–27 also provides a significant boost to medical research and innovation under the Department of Health Research. The allocation for the Indian Council of Medical Research (ICMR), New Delhi has been enhanced to ₹ 4,000 crore in BE 2026–27, reflecting an increase of ₹ 850 crore, registering a 26.98 rise over the Revised Estimates of FY 2025–26 of ₹ 3,150.50 crore.

Strengthening Institutes of National Importance remains a key priority of this Government. Under the Pradhan Mantri Swasthya Suraksha Yojana, 22 new AIIMS have been approved, of which 18 are fully functional with teaching, research, OPD/IPD, emergency, and diagnostic services, while the rest are under construction. Significantly, 15 of these AIIMS were approved after 2014, and 12 have been operationalised during this period, dramatically expanding access to world-class tertiary care in underserved and remote regions. Since 2014, MBBS and nursing seats have more than doubled, and postgraduate and super-speciality seats have increased by 100 percent. In the last three years alone, over 3 crore OPD patients and 15 lakh IPD patients have received care, underscoring the transformative impact of these institutions in expanding world-class tertiary healthcare to underserved regions.

Recognising the growing healthcare demands arising from an ageing population, the rising burden of non-communicable diseases (NCDs), and increasing global demand for skilled healthcare professionals, the Government has proposed a phased plan outlay of ₹ 980 crore over three years for the expansion and strengthening of allied and healthcare professionals’ education. This strategic investment will enhance diagnostic, preventive, rehabilitative, and public health services, while positioning India as a global hub for skilled allied healthcare professionals. In addition, an overarching national campaign will be undertaken to create pride, visibility, and differentiation for this aspirational healthcare career pathway, highlighting its significant potential in employment generation and socio-economic empowerment, particularly for youth.

The Union Budget 2026–27 lays strong emphasis on strengthening India’s drug regulatory and enforcement framework. The proposal to further strengthen the Central Drugs Standard Control Organisation (CDSCO) will add fillip to the efforts to encourage pharmaceutical research and development, and complement the ongoing measures to reduce regulatory burden and promote ease of doing business while focussing on quality.

To propel India’s leadership in advanced therapeutics, the Union Budget 2026–27 proposes a major push to the biopharmaceutical sector through the launch of the ‘Bio Pharma Shakti’ initiative, with a dedicated outlay of ₹ 10,000 crore over the next five years. This strategic programme will build a robust ecosystem for domestic production of biologics and biosimilars, reduce import dependence, enhance affordability, and strengthen India’s position as a global biopharma manufacturing hub, while fostering innovation, research excellence, and high-end manufacturing capabilities.

As part of this strategy, a nationwide biopharma-focused academic and research network will be established through the creation of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing NIPERs, fostering high-end research, skilled manpower development, and industry-academia collaboration.

The initiative will also establish a national network of 1,000 accredited clinical trial sites, significantly strengthening India’s clinical research ecosystem, accelerating innovation, and positioning the country as a preferred global destination for ethical, high-quality, and efficient clinical trials.

To provide significant relief to patients, especially those undergoing cancer treatment, the Budget proposes full exemption of basic customs duty on 17 life-saving drugs and medicines. Further, seven additional rare diseases have been included for exemption of import duties on personal imports of drugs, medicines, and food for special medical purposes, substantially reducing treatment costs and easing the financial burden on affected families.

To strengthen mental healthcare services, the Budget provides for the upgradation of premier mental health institutions at Ranchi and Tezpur, along with the establishment of a NIMHANS in North India, significantly expanding access to advanced mental health care, training, and research facilities. The Budget also proposes the establishment of Emergency and Trauma Care Centres in every district hospital, ensuring affordable and round-the-clock (24×7) access to critical emergency medical services for citizens across the country.

The Union Budget 2026–27 reaffirms the Government’s unwavering commitment to building a resilient, inclusive and future-ready healthcare system, led by the Ministry of Health & Family Welfare, ensuring affordable and quality healthcare for all citizens, in pursuit of the vision of Viksit Bharat@2047.

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HFW–Union Health Budget 2026-27/1^st February 2026/1