With so much speculation and buzz in the market, the Union Budget 2026 has finally been announced. While there is no tax relief for the middle class, the government has announced various measures to boost the economy and support people across all segments. Several noticeable announcements were made with regard to the healthcare sector, including a record allocation crossing the ₹1 lakh crore mark for the first time.
Total Health Care Allocation A Record Increase
In the Budget 2026–27, the government has announced a record allocation of ₹1,06,530.42 crore to the Ministry of Health and Family Welfare (MoHFW), which is up by 10% compared to the previous budget. Here is the breakdown of the same:
- National Health Mission (NHM): ₹39,390 crore, up by 6%.
- Pradhan Mantri Jan Arogya Yojana (PM-JAY): ₹9,500 crore, up by 5.6%.
- Department of Health Research: ₹4,821.21 crore, nearly 27% growth.
- AIIMS New Delhi: ₹5,500.92 crore for advanced tertiary care.
- Central Government Health Scheme and pensioner healthcare: ₹8,697.86 crore.
- Central hospitals: ₹4,599.66 crore.
- PGIMER Chandigarh: ₹2,504.65 crore
Other Key Highlights From Healthcare Budget 2026
Here are some more announcements related to the healthcare sector that you should be aware of:
- The government has reduced customs duties on 17 cancer drugs and granted exemptions on medicines targeting seven rare diseases to lower treatment costs.
- The government has allocated funds to expand trauma, transplant, and robotic surgery units at major institutions.
- To push the bio-pharma segment, the government allocated ₹10,000 crore over five years for the Biopharma Shakti Initiative, aiming to make India a global hub for biologics and biosimilars.
- The healthcare budget is also focused on the health and care economy to position India as a global medical tourism destination.
Health Insurance & Financial Protection
To offer financial protection to the public, the government has allocated heavily to its flagship scheme, Pradhan Mantri Jan Arogya Yojana (PM-JAY), amounting to around ₹ 9,500 crore. Those who are not aware, under this scheme, eligible households receive cashless health coverage of up to ₹5 lakh per family per year for secondary and tertiary hospitalisation at empanelled public or private hospitals across India. The scheme uses the Socio-Economic Caste Census criteria to identify beneficiaries.
However, there are no such announcements that would impact premium for health insurance plans for families.
Medical Education and Workforce Highlights
The Union Budget 2026 allocates ₹1,725 crore to Human Resources for Health and Medical Education, a 5.83% increase over the previous financial year. Below are the key insights:
- The government plans to spend ₹11,307 crore under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) to improve the infrastructure of existing AIIMS and medical colleges.
- The Indian Council of Medical Research (ICMR) budget has been increased to ₹4,000 crore, up by nearly 27%.
- There are proposals to establish a new NIMHANS-2 (National Institute of Mental Health and Neuro Sciences) in North India.
- To boost healthcare staffing, the government plans to train about 1 lakh allied health professionals over the next five years in disciplines such as diagnostics, therapy, rehabilitation, lab work, and emergency care.
- The government has proposed setting up three new All India Institutes of Ayurveda.
Conclusion
Overall, the Healthcare Budget 2026 clearly signals that health is no longer a side issue but a core priority. As a citizen, this is the right time to check your eligibility for schemes like PM-JAY, stay informed about lower-cost medicines, and make better use of upgraded public hospitals. For students and professionals, the expanded medical education and training plans also open new career paths.
FAQs
1. How is the Healthcare Budget 2026 different from previous years?
In Budget 2026–27, India’s healthcare outlay was raised to about ₹1,06,530 crore, nearly a 10% increase over the previous year’s revised estimate, marking a stronger focus on health infrastructure, research, and programmes.
2. What does Budget 2026 mean for public healthcare facilities?
In this year’s budget, the government aims to upgrade hospitals and medical colleges across India. Allocations have also been made for new AIIMS and for boosting emergency and trauma care capacity in district hospitals.
3. How does the Healthcare Budget 2026 impact medical education in India?
The budget increases allocations under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and related schemes to modernise institutions and expand clinical training. Plans include adding 10,000 new medical seats in the short term, with a long-term target of up to 75,000 seats over five years to address doctor shortages and improve the quality of care and education.
4. What are the key benefits of the Healthcare Budget 2026 for rural India?
The government has announced investments in health infrastructure under the Ayushman Bharat Health Infrastructure Mission. This step will strengthen services at sub-district and rural hospitals. In addition, reduced customs duties on key medicines will help lower treatment costs for rural patients.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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