Health-Care Budget Overview 2026
The health-care allocations for 2026, while aggressive in some sectors, have not met expectations for a significant increase in spending as a percentage of GDP. The total allocation is over ₹1.05 lakh crore, marking a 10% increase from the previous year's revised estimates. However, this only accounts for approximately 1.9% of government expenditure and about 0.26% of GDP.
Key Initiatives and Allocations
- Biopharma SHAKTI Scheme:
- The scheme is one of the highest budgetary allocations this year, with ₹10,000 crore dedicated to transforming India into a manufacturing hub for biologics and biosimilars over the next five years.
- Plans include the creation of a pan-country clinical trial infrastructure through 1,000 accredited clinical trial sites.
- Research and Development:
- Establishment of three new National Institutes of Pharmaceutical Education and Research (NIPER) and modernization of seven existing units.
- Creation of a second National Institute of Mental Health and Neurosciences (NIMHANS) campus and two upgraded national mental health institutes.
- Training and Workforce Development:
- Target to train one lakh allied health professionals over the next five years.
- Training of 1.5 lakh care workers to address the needs of the elderly population.
- Affordability Measures:
- Exemption of 17 cancer medicines and several rare disease treatments from customs and import duties.
- Reduction of tax collected at source on medical and educational remittances from 5% to 2%.
Criticism and Concerns
There has been criticism of the government's refusal to increase health-care allocation to 2.5% of GDP by 2025, as committed in the National Health Policy of 2017. Public health activists have highlighted the reduction in funding for the National Health Mission, despite efficient utilization of funds. Concerns also exist regarding the central government's reduced share, potentially leading to uneven improvements in state health-care sectors.
