FUNDING FLOURISHES, PRIORITIES PLUMMET

Union Budget 2025-26 raises healthcare funding by nearly 10% to ₹99,858 crore — ushering in major expansions while key public health priorities take a back seat

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The Indian government has allocated ₹99,858 crore for the healthcare sector in the Union Budget 2025-26, reflecting a 9.78% increase from the previous fiscal year. Finance Minister Nirmala Sitharaman, in her budget presentation on 1st February, emphasized expanding healthcare infrastructure, medical education, digital health, and disease surveillance. However, despite the higher allocation, several critical public health areas remain overlooked.

The Ministry of Health and Family Welfare has seen a significant budget increase, with the majority allocated to its core functions and a smaller portion for health research. Over the past decade, healthcare spending has nearly tripled. Key allocations focus on flagship programmes like Ayushman Bharat, health infrastructure, and the National Health Mission, while digital and mental health initiatives have also received dedicated support. Leading institutions, including AIIMS and ICMR, have been granted additional funding, with AIIMS Delhi receiving a substantial share.

The government plans to establish 200 daycare cancer centres in FY26 and expand oncology care by setting up similar facilities in district hospitals over the next three years. Medical education has also seen increased investment, with 10,000 new medical seats to be added in the coming year, contributing to the goal of 75,000 additional seats over the next five years.

Sitharaman highlighted that undergraduate and postgraduate medical education seats have already risen by 1.1 lakh over the past decade, marking a 130% increase. However, the budget lacked major announcements on public-private partnerships in medical education, alternative financing for students, or faculty expansion, all of which are key for sustainable growth in healthcare education.