The Union Budget 2026–27 accords paramount importance to the health sector through enhanced budgetary allocations and focused policy interventions for the Ministry of Health & Family Welfare (MoHFW). Together, these measures aim to accelerate the comprehensive transformation of India’s healthcare ecosystem.
Presenting the Budget in Parliament, the Hon’ble Finance Minister outlined a clear 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.
Health Budget Sees Nearly 10% Increase, Marking a Historic Milestone
As reported by pib.gov.in, the Union Budget 2026–27 marks a significant milestone in strengthening India’s healthcare system, with the allocation for the Ministry of Health & Family Welfare rising to ₹1,06,530.42 crore. This represents a nearly 10% increase over the Revised Estimates of FY 2025–26.
Importantly, the allocation includes enhanced financial support of ₹4,821.21 crore for the Department of Health Research (DHR). Cumulatively, health sector funding has increased by over 194% since FY 2014–15, translating into an additional ₹70,349.75 crore. This sustained rise in public expenditure underscores the Government’s unwavering focus on expanding healthcare access, strengthening infrastructure, promoting medical research, and ensuring affordable, quality care for all.
At the same time, the scheme component under MoHFW has 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.
Flagship Health Schemes Receive Enhanced Support
Building on the enhanced financial outlay, the Budget provides significant scheme-wise increases across key flagship programmes.
The allocation for the Pradhan Mantri Jan Arogya Yojana (PM-JAY) has increased to ₹9,500 crore in BE 2026–27, reflecting a ₹500 crore (5.56%) rise over FY 2025–26. This enhancement will help expand beneficiary coverage, improve service quality, and strengthen hospital networks nationwide.
Similarly, the National Health Mission (NHM) allocation has risen to ₹39,390 crore, marking an increase of ₹2,289.93 crore (6.17%). This funding will further strengthen primary healthcare delivery, maternal and child health services, and disease control interventions across States and Union Territories.
Major Push for Healthcare Infrastructure Under PM-ABHIM
The Budget accords a strong thrust to healthcare infrastructure development under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM). The allocation for BE 2026–27 stands at ₹4,770 crore, including ₹570 crore under the Central Sector component and ₹4,200 crore as capital expenditure under the Centrally Sponsored Scheme.
This represents a substantial increase of ₹1,925 crore, or 67.66%, over the Revised Estimates of FY 2025–26. Consequently, the Mission will expand critical care blocks, integrated public health laboratories, district and sub-district hospitals, and other essential health infrastructure.
Strengthening Medical Education and Advanced Care Facilities
In parallel, the Union Budget 2026–27 prioritises the upgradation and expansion of healthcare infrastructure and medical education. The Government has proposed major investments in Cancer Centres, Trauma and Emergency Care Services, Super Specialty Blocks, Transplant Units, Robotic Surgery Centres, and AI-enabled medical institutions.
Additionally, the Budget provides for a substantial increase in MBBS, postgraduate, super-specialty, and nursing seats. These measures will strengthen teaching and clinical training capacities while promoting cutting-edge research and innovation, particularly in advanced biomedical and artificial intelligence-driven fields.
Expanded Support Under PMSSY and AIIMS Network
Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), including establishment expenses of new AIIMS, the total allocation for FY 2026–27 stands at ₹11,307 crore. This marks an increase of ₹407 crore (3.73%) over the Revised Estimates of FY 2025–26.
This enhanced allocation will support the construction of new AIIMS, operationalisation of existing institutions, and the upgradation of Government Medical Colleges, thereby strengthening tertiary care access across the country.
Boost to Disease Control and Public Health Programmes
The Budget significantly enhances funding for disease control initiatives. The allocation for the National AIDS and STD Control Programme has increased to ₹3,477 crore in BE 2026–27, reflecting a rise of ₹815.50 crore (30.64%).
Within this, support for Blood Transfusion Services has risen to ₹275 crore, marking a 37.50% increase. These measures aim to improve blood safety, availability, and quality standards nationwide.
Investment in Allied Health and Geriatric Care Workforce
Recognising the growing demands arising from population ageing and the rising burden of non-communicable diseases, the Government has proposed a phased outlay of ₹980 crore over three years to strengthen allied and healthcare professionals’ education.
Under this initiative, Allied Health Professional Institutes in 10 key disciplines will be established and upgraded to create nearly one lakh skilled professionals over the next five years. In addition, a focused programme will train 1.5 lakh geriatric caregivers, addressing India’s expanding long-term care needs while enhancing employment opportunities.
Human Resources for Health and Medical Education Strengthened
Further reinforcing workforce capacity, the allocation for Human Resources for Health and Medical Education has increased to ₹1,725 crore, reflecting a 5.83% rise over FY 2025–26. This funding will support new medical colleges, seat expansion, and strengthened nursing education.
Accelerating Digital Transformation in Healthcare
To drive digital health integration, the allocation for the Ayushman Bharat Digital Mission has increased to ₹350 crore in BE 2026–27. This enhancement will expand digital health records, interoperability frameworks, telemedicine services, and integrated hospital information systems, ensuring seamless and citizen-centric healthcare delivery.
Non-Scheme Allocations Strengthen Premier Institutions
Beyond scheme-based funding, the Budget provides substantial increases under the non-scheme component. AIIMS, New Delhi has received an enhanced allocation of ₹5,500.92 crore, supporting advanced tertiary care, education, and research.
Similarly, allocations for the Central Government Health Scheme and Pensioners’ Benefits have increased to ₹8,697.86 crore, while Central Hospitals have received ₹4,599.66 crore to support operations, infrastructure upgrades, and new facilities. PGIMER, Chandigarh has also seen an enhanced allocation to strengthen tertiary care and research.
Stronger Push for Medical Research and Innovation
The Budget delivers a significant boost to medical research under the Department of Health Research. The allocation for the Indian Council of Medical Research (ICMR) has increased to ₹4,000 crore, reflecting a 26.98% rise, to accelerate innovation and strengthen India’s research ecosystem.
AIIMS Expansion Transforms Access to Tertiary Care
Strengthening Institutes of National Importance remains a key priority. Of the 22 AIIMS approved under PMSSY, 18 are fully functional, with the majority approved and operationalised after 2014. Since then, MBBS and nursing seats have more than doubled, while postgraduate and super-specialty seats have increased by 100%.
In the last three years alone, these institutions have treated over three crore OPD patients and 15 lakh IPD patients, significantly expanding access to world-class tertiary care in underserved regions.
Regulatory Strengthening and Biopharma Push
The Budget reinforces India’s drug regulatory framework by strengthening the Central Drugs Standard Control Organisation (CDSCO). These measures will support pharmaceutical R&D while promoting quality and ease of doing business.
At the same time, the Government has launched the ‘Bio Pharma Shakti’ initiative with an outlay of ₹10,000 crore over five years. This programme will boost domestic production of biologics and biosimilars, reduce import dependence, and position India as a global biopharma manufacturing hub.
Clinical Research, NIPER Expansion, and Patient Relief
As part of this strategy, the Government will establish three new NIPERs, upgrade seven existing ones, and create a national network of 1,000 accredited clinical trial sites.
To ease patient burden, the Budget exempts basic customs duty on 17 life-saving drugs and extends duty exemptions to seven additional rare diseases. These steps will substantially reduce treatment costs, particularly for cancer patients.
Mental Health and Emergency Care Take Centre Stage
Finally, the Budget strengthens mental healthcare by upgrading premier institutions in Ranchi and Tezpur and establishing a NIMHANS in North India. It also proposes Emergency and Trauma Care Centres in every district hospital, ensuring round-the-clock access to critical care.
Towards a Resilient and Future-Ready Healthcare System
Overall, the Union Budget 2026–27 reaffirms the Government’s unwavering commitment to building a resilient, inclusive, and future-ready healthcare system. Through sustained investments and reforms led by the Ministry of Health & Family Welfare, the Budget advances the vision of affordable, quality healthcare for all, in pursuit of Viksit Bharat@2047.