Union Budget 2026–27 raises health allocation by 10% to ₹1.06 lakh crore, reinforcing focus on public healthcare expansion.
Flagship schemes like PM-JAY, NHM and AIIMS receive higher funding to strengthen healthcare delivery and infrastructure.
Increased spending on digital health, medical education and ICMR boosts research and future health preparedness.
The Ministry of Health and Family Welfare has been allocated an amount of ₹1,06,530.42 crore in the Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman on Sunday, 1 February 2026. This would give a significant boost to India’s healthcare sector, with a 10 percent increase over the Revised Estimates of FY 2025–26.
FM Sitharaman drafted a comprehensive roadmap highlighting inclusive growth, which would include healthcare reforms and emphasize universal health coverage, infrastructure expansion, medical education, and research. The government clearly stated its focus on strengthening public health systems and expanding access to healthcare services across the country through the Budget.
The Ministry released an official statement saying, “The enhanced allocation, including strengthened financial support for the Department of Health Research (DHR) amounting to Rs 4,821.21 crore, represents a cumulative increase of over 176 per cent, translating into an additional Rs 63,677.89 crore compared to the health budget of FY 2014–15.” It further added that the scheme component under the Ministry has been increased by Rs 6,175.96 crore (10.78 per cent), while the non-scheme component has been raised by Rs 2,500.96 crore (6.32 per cent) over the Revised Estimates of FY 2025–26.
The Budget also provided significant scheme-wise enhancements across key flagship programmes, including raising the allocation for the Pradhan Mantri Jan Arogya Yojana (PM-JAY) to Rs 9,500 crore in BE 2026–27, registering an increase of Rs 500 crore. The increase aims at expanding beneficiary coverage, improving service quality, and strengthening hospital networks.
In addition, the National Health Mission (NHM) has been allocated an amount of Rs 39,390.00 crore, reflecting an enhancement of Rs 2,289.93 crore. This will further help strengthen primary healthcare delivery, maternal and child health services, and disease control interventions across States and Union Territories. Healthcare infrastructure development under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) will also receive a major thrust, with funding of Rs 4,770 crore in BE 2026–27.
The Budget also prioritized the upgradation and expansion of healthcare infrastructure and medical education. Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), the total allocation for FY 2026–27 stands at Rs 11,307 crore, which includes the establishment expenses of new AIIMS. The increased amount would go towards the construction of new AIIMS, operationalization of existing institutions, and the upgradation of government medical colleges, as per the Ministry.
The government has further allocated an amount of Rs 3,477 crore in BE 2026–27 for the National AIDS and STD Control Programme. This would help strengthen support for blood transfusion services, with a provision of Rs 275 crore, marking an increase of Rs 75 crore. The Ministry stated that the additional amount would be used for “improving blood safety, availability, and quality standards nationwide.”
There are also plans for the expansion and strengthening of allied and healthcare professionals’ education, with an allocation of Rs 980 crore over three years. Meanwhile, Human Resources for Health and Medical Education has been allocated Rs 1,725 crore. This includes the establishment of new medical colleges, the upgradation of undergraduate and postgraduate seats, and the augmentation of nursing education.
The Ayushman Bharat Digital Mission will now receive an increased amount of Rs 350 crore in BE 2026–27. The Ministry said, “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.”
The Union Budget 2026 has been designed to significantly boost medical research and innovation under the Department of Health Research. This was highlighted by the Ministry, which stated, “The allocation for the Indian Council of Medical Research (ICMR), New Delhi, has been enhanced to Rs 4,000 crore in BE 2026–27, reflecting an increase of Rs 850 crore, registering a 26.98 per cent rise over the Revised Estimates of FY 2025–26 of Rs 3,150.50 crore.”
The rise in healthcare allocation in the Union Budget 2026–27 reflects an overall sustained policy push to ensure a resilient, accessible, and future-ready health system. The government is aiming to fill the gaps that exist in service delivery by increasing funding for flagship schemes, medical infrastructure, digital health initiatives, and research institutions such as the ICMR. This would help strengthen preparedness for emerging health challenges.
The government has now placed healthcare at the center of India’s development agenda, with a sharp rise in investment since FY 2014–15 signaling a long-term commitment to public health. This would reinforce the role of the sector in ensuring equitable growth and an improved quality of life for citizens.
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