Union Budget 2026: Health Ministry gets Rs 1.06 lakh cr; 5 new regional medical hubs announced
New Delhi: The Union Health Ministry has been allocated Rs 1,06,530.42 crore in the 2026-27 Budget, a 10% increase from the previous year, as the government seeks to position India as a global destination for medical tourism.
Presenting the budget on Sunday, Finance Minister Nirmala Sitharaman proposed a new initiative to support states in creating five regional medical hubs through public-private partnerships. These hubs are envisioned as integrated complexes housing medical, educational, and research facilities.
"To promote India as a hub for medical tourism services, I propose to launch a Scheme to support States in establishing five Regional Medical Hubs, in partnership with the private sector," Sitharaman said. The centres will feature AYUSH centres, diagnostic infrastructure, and dedicated facilities for medical value tourism, including post-care and rehabilitation.
Focus on Allied Health and Skilling
A significant portion of the health agenda is directed toward the "care ecosystem," with a specific focus on Allied Healthcare Professionals (AHPs). For the first time, the ministry has earmarked Rs 1,000 crore for a dedicated AHP scheme.
- Workforce Expansion: The government plans to add 100,000 AHPs over the next five years across 10 disciplines, including optometry, radiology, anaesthesia, and behavioural health.
- Caregiver Training: Sitharaman announced that 1.5 lakh caregivers will be trained in skills ranging from wellness and yoga to the operation of medical assistive devices.
- Institutional Upgrades: Existing AHP institutions will be modernised, and new ones will be established in both the private and public sectors.
Budgetary Breakdown
Of the total health outlay, Rs 1,01,709.21 crore is allocated to the Department of Health and Family Welfare, while Rs 4,821.21 crore is set aside for the Department of Health Research.
Investment in major centrally sponsored schemes saw a steady rise:
- National Health Mission (NHM): Increased to Rs 39,390 crore from Rs 37,100.07 crore.
- Ayushman Bharat (PM-JAY): Hiked by 5.6% to Rs 9,500 crore.
- Digital & Mental Health: The National Digital Health Mission was allocated Rs 350 crore, while the National Tele Mental Health Programme received a marginal increase to Rs 51 crore.
Research and autonomous institutions also received a boost, with the Indian Council of Medical Research (ICMR) seeing a 10% increase to Rs 4,821.21 crore and AIIMS, New Delhi, receiving Rs 5,500.92 crore.
The budget also includes the "Biopharma Shakti" initiative, a Rs 10,000 crore program over five years to bolster high-end pharmaceutical research and manufacturing, further aligning healthcare spending with India's broader industrial goals.
With inputs from PTI