Union Budget 2026-27 Allocates INR 1,05,530 Cr to Healthcare Sector

Union Finance Minister Nirmala Sitharaman outlined measures aimed at strengthening healthcare delivery, medical education, digital health infrastructure, and research.

The Union Budget 2026–27 has allocated ₹1,05,530.42 crore to the healthcare sector, reflecting an increase of 8.96 percent over the revised estimates of FY 2025–26, according to the Ministry of Health and Family Welfare.

Presenting the Budget in Parliament, Union Finance Minister Nirmala Sitharaman outlined measures aimed at strengthening healthcare delivery, medical education, digital health infrastructure, and research.

The Ministry stated that the enhanced allocation includes increased financial support for the Department of Health Research (DHR) amounting to ₹4,821.21 crore, representing a cumulative increase of over 176 percent, or an additional ₹63,677.89 crore, compared to the health budget of FY 2014–15.

“The scheme component under the Ministry of Health & Family Welfare has been increased by ₹6,175.96 crore (10.78 percent), while the non-scheme component has risen by ₹2,500.96 crore (6.32 per cent) over the Revised Estimates of FY 2025–26,” the Ministry said in an official statement.

The Budget provided scheme-wise enhancements across key programmes. Allocation for the Pradhan Mantri Jan Arogya Yojana (PM-JAY) has been raised to ₹9,500 crore in BE 2026–27, an increase of ₹500 crore, aimed at expanding beneficiary coverage, improving service quality, and strengthening hospital networks.

The National Health Mission (NHM) allocation has been enhanced to ₹39,390 crore, reflecting an increase of ₹2,289.93 crore, to support primary healthcare delivery, maternal and child health services, and disease control interventions across States and Union Territories.

Healthcare infrastructure development has also received support, with ₹4,770 crore allocated to the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) in BE 2026–27. 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.

The government has allocated ₹3,477 crore for the National AIDS and STD Control Programme, including ₹275 crore for blood transfusion services, marking an increase of ₹75 crore. The Ministry said the enhanced allocation is “aimed at improving blood safety, availability, and quality standards nationwide”.

A phased plan outlay of ₹980 crore over three years has been allocated for the expansion and strengthening of allied and healthcare professionals’ education. Human Resources for Health and Medical Education has been allocated ₹1,725 crore, covering new medical colleges, upgradation of undergraduate and postgraduate seats, and nursing education.

The allocation for the Ayushman Bharat Digital Mission has been increased to ₹350 crore in BE 2026–27. “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 Ministry said.

Medical research and innovation have also received enhanced support. “The allocation for the Indian Council of Medical Research (ICMR), New Delhi, has been enhanced to ₹4,000 crore in BE 2026–27, reflecting an increase of ₹850 crore, registering a 26.98 rise over the Revised Estimates of FY 2025–26 of ₹3,150.50 crore,” the Ministry added.

Stay tuned for more such updates on Digital Health News