Health Budget Rises 10% With Push For Medical Hubs
- Health Budget rises with integrated medical hubs plan
- Health Budget allocation boosts allied care and tourism
Hyderabad: The Health Budget for 2026-27 has increased by 10 per cent as the Union government outlined plans to strengthen healthcare infrastructure and promote medical tourism. The Union Health Ministry received an allocation of Rs 1,06,530.42 crore in the Budget 2026-27, reflecting a rise over the previous financial year.
While presenting the Union Budget 2026-27 on Sunday, Finance Minister Nirmala Sitharaman said the government will support states in setting up five regional medical hubs. These hubs will come up in partnership with the private sector. Therefore, the government aims to position India as a leading global destination for medical tourism.
The Finance Minister said these medical hubs will function as integrated healthcare complexes. They will combine medical services, education, and research facilities at one location. Meanwhile, the government expects this model to strengthen advanced care and training ecosystems across regions.
Allied Health Care and workforce expansion
The Health Budget also focuses on expanding the allied healthcare workforce. Sitharaman said existing institutions for Allied Healthcare Professionals will be upgraded. Also, new AHP institutions will be set up in both private and government sectors. This step aims to address skilled manpower needs in healthcare.
“This will cover 10 selected disciplines, including Optometry, Radiology, Anaesthesia, OT technology, Applied Psychology and Behavioural Health, and add 100,000 AHPs over the next five years,” she said. Therefore, the Health Budget links workforce growth with service expansion.
The Finance Minister also announced steps to strengthen the care ecosystem. She said the government will focus on geriatric and allied care services. Later, she added that 1.5 lakh caregivers will be trained in the coming year. These caregivers will gain allied skills such as wellness, yoga, and operation of medical and assistive devices.
Department wise allocations under Health Budget
Out of the total Health Budget allocation, Rs 101,709.21 crore has been earmarked for the Department of Health and Family Welfare. Meanwhile, Rs 4,821.21 crore has been set aside for the Department of Health Research. For the first time, the Union Health Ministry allocated Rs 1,000 crore for the Scheme for Allied Health Care Professionals.
Among centrally sponsored schemes, the allocation for the National Health Mission rose from Rs 37,100.07 crore in 2025-26 to Rs 39,390 crore in 2026-27. Similarly, the allocation for Ayushman Bharat Pradhan Mantri Jan Arogya Yojna increased from Rs 8,995 crore to Rs 9,500 crore, marking a rise of 5.6 per cent.
The Health Budget also increased funding for digital and mental health programmes. The National Tele Mental Health Programme allocation rose from Rs 45 crore to Rs 51 crore. Meanwhile, the National Digital Health Mission received Rs 350 crore compared to Rs 324.26 crore earlier.
Allocations for autonomous bodies rose to Rs 22,343.97 crore in 2026-27. The allocation for AIIMS, New Delhi, increased to Rs 5,500.92 crore, while ICMR received Rs 4,821.21 crore, showing nearly a 10 per cent rise. (Maxim News)
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