Health budget rises 10% as govt plans integrated medical hubs
The Union Budget 2026–27 allocates Rs 1.06 lakh crore to the Health Ministry, marking a 10% increase. The government plans regional medical hubs, expansion of allied healthcare professionals, and higher funding for key health schemes and institutions.
New Delhi: The Union Health Ministry has been allocated Rs 1,06,530.42 crore in the Budget 2026-27, a 10 per cent hike over 2025-26, with the government proposing a scheme to support states in establishing five regional medical hubs in partnership with the private sector to promote India as a prime medical tourism destination.
These hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026-27 on Sunday.
The Minister said that existing institutions for Allied Healthcare Professionals (AHPs) will be upgraded and new AHP institutions will be established in private and government sectors.
“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.
Sitharaman said that a strong care ecosystem, covering geriatric and allied care services, will be built and, in the coming year, 1.5 lakh caregivers will be trained in allied skills, such as wellness, yoga and operation of medical and assistive devices.
Of the Rs 1,06,530.42 crore allocated for the Ministry of Health and Family Welfare, Rs 101,709.21 crore has been earmarked for the Department of Health and Family Welfare and Rs 4,821.21 crore for the Department of Health Research. For the first time, the Union Health Ministry has allocated Rs 1,000 crore for the Scheme for Allied Health Care Professionals (AHPs).
Among the centrally sponsored schemes, the allocation for the National Health Mission has been increased from Rs 37100.07 crore in 2025-36 to Rs 39,390 crore in 2026-27. Moreover, the allocation for Ayushman Bharat Pradhan Mantri Jan Arogya Yojna (AB PM-JAY) has been hiked from 8,995 crore to Rs 9,500 crore, marking a rise of 5.6 per cent.
For the National Tele Mental Health Programme, the budgetary allocation has been increased marginally from Rs 45 crore to Rs 51 crore while the National Digital Health Mission has been earmarked Rs 350 crore from Rs 324.26 crore in the 2026-27 fiscal.
The budgetary allocation for autonomous bodies increased from Rs 21,901.98 crore in 2024-25 to Rs 22,343.97 crore in 2026-27.
The allocation for AIIMS, New Delhi, has been increased from Rs 5,238.70 crore to Rs 5500.92 crore, while the ICMR has been earmarked Rs 4821.21 crore, recording around a 10 per cent increase.
