SDG 3: Good Health and Well-being | SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure | SDG 10: Reduced Inequalities
Ministry of Health and Family Welfare (MoHFW) | Department of Health Research (DHR) | Indian Council of Medical Research (ICMR)
The Union Budget 2026–27 announced an allocation of ₹ 1,06,530.42 crore to the Ministry of Health and Family Welfare, marking a nearly 10% increase over the Revised Estimates of FY 2025–26. This marks a cumulative growth of over 194% in the health budget over the last 12 years. The enhanced outlay includes a 10.78% increase in scheme components and a 6.32% rise in non-scheme components, reinforcing the Government’s commitment to universal health coverage and inclusive growth.
Flagship Schemes and Infrastructure Push The budget provides substantial enhancements across key health programs:
PM-ABHIM: The allocation for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission surged by 67.66% to ₹ 4,770 crore, aimed at expanding critical care blocks and integrated public health laboratories.
PM-JAY and NHM: PM-JAY (Ayushman Bharat) received ₹ 9,500 crore (up 5.56%), while the National Health Mission (NHM) was enhanced to ₹ 39,390 crore (up 6.17%) to strengthen primary and maternal healthcare.
PMSSY and AIIMS: An allocation of ₹ 11,307 crore was made for the Pradhan Mantri Swasthya Suraksha Yojana, supporting the construction of new AIIMS and the modernization of existing medical institutions.
Research and Innovation: The Indian Council of Medical Research (ICMR) saw a 26.98% increase to ₹ 4,000 crore, with the overall Department of Health Research allocation reaching over ₹ 4,821 crore.
Expansion of Medical Education and Specialized Care Addressing emerging health challenges, the budget introduces targeted interventions:
Allied Health Professionals: A phased plan of ₹ 980 crore over three years will set up new institutions to add 100,000 allied health professionals over five years.
Geriatric Care: A focused program will train 1.5 lakh geriatric caregivers to address the long-term care needs of India’s ageing population.
Regulatory Capacity: The Central Drugs Standard Control Organisation (CDSCO) will be further strengthened to enhance pharmaceutical R&D and quality standards.
Medical Seats: Since 2014, MBBS and nursing seats have more than doubled, while postgraduate and super-specialty seats have increased by 100%. The 2026-27 budget provides a substantial increase in MBBS, PG, and nursing seats to strengthen teaching and clinical training capacities.
Affordable Treatment: Customs duty on drugs for cancer and rare diseases has been reduced to lower treatment costs and out-of-pocket expenditure.
What is the significance of the 67% increase in the PM-ABHIM allocation in Budget 2026–27? The 67.66% surge in the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) to ₹ 4,770 crore signifies a major shift toward building “resilient” health systems. This funding is specifically directed toward capital expenditure for critical care blocks, integrated public health laboratories, and district hospitals, ensuring that India’s infrastructure can handle both everyday healthcare and future public health emergencies.
Policy Relevance
The 2026–27 health budget represents a strategic transition toward specialized, decentralized, and research-driven healthcare.
Addressing the Healthcare Brain Drain: By doubling medical and nursing seats, the government is creating a massive "human capital buffer" to ensure that the rapid expansion of AIIMS and district hospitals is supported by qualified specialists.
Decentralizing Trauma Care: The plan to establish Trauma Centres in every district hospital is a landmark move to reduce mortality from accidents and emergencies by providing “golden hour” care locally.
Addressing Demographic Reality: By funding the training of 1.5 lakh geriatric caregivers, the government is proactively building a formal care ecosystem for India’s growing elderly population, which was previously a gap in national health policy.
Positioning as a Biopharma Hub: The launch of ‘Bio Pharma Shakti’ (₹ 10,000 crore) complements the manufacturing push by ensuring that domestic production of biologics and biosimilars is supported by a robust research and regulatory framework.
Skill-to-Employment Pipeline: Upgrading allied health institutions targets the high-growth global demand for paramedics and technicians, potentially making healthcare a major export sector for Indian human capital.
Relevant Question for Policy Stakeholders: How can the Ministry of Health ensure that the 100% increase in PG and super-specialty seats since 2014 is matched by a “Reverse Brain Drain” policy to retain these specialists in underserved district hospitals?
Follow the full news here: Union Budget 2026–27: ₹ 1,06,530.42 Crore Allocated to Ministry of Health and Family Welfare