India’s Union Budget 2026-27 placed strong emphasis on health and medical services. The Ministry of Health and Family Welfare (MoHFW) received a significant boost in overall funding. This reflects government intent to strengthen healthcare access, innovation, and affordable services across the country.

Quick Summary

Total allocation: ₹1,06,530.42 crore (~10% higher than FY 2025-26).

Key focus: Primary care, mental health, trauma care, research & medical hubs.

New initiatives: Biopharma support, allied health workforce expansion & digital health.

Why This Budget Matters

What is the Budget Allocation?

This year, MoHFW crosses the ₹1 lakh crore mark for the first time – a sign that healthcare is a priority for national growth and public welfare.

• MoHFW total budget: ₹1,06,530.42 crore.
• Scheme component increased by ₹6,175.96 crore (10.78%).
• Non-scheme & support services also have higher funds.

Divine Shree Ram Style Indian Couple Portrait AI Prompt with Realistic Faces

Key Areas of Budget Focus

1) Healthcare Services & Access

The budget aims to make quality healthcare more reachable:

• National Health Mission (NHM): Strengthens rural & urban public health services.
• PM Jan Arogya Yojana (PM-JAY): Higher coverage and benefits.

Why this matters: These are core public health schemes that directly affect everyday care in cities and villages.

2) Mental Health & Specialized Care

• New NIMHANS (North India): Proposed expansion to strengthen mental health support.
• Upgrades in mental health institutes to improve services.

Why this matters: Mental health was underserved; this budget puts it higher on the agenda.

3) Research & Innovation

• Health Research Dept gets a bigger share (up ~24%).
• Indian Council of Medical Research (ICMR): Stronger funding to support research.

Example: More funds help vaccine research, disease studies, and public health innovation.

4) Affordable Treatment for All

• Customs duty removed on many cancer & rare disease drugs, lowering prices.
• Focus on trauma care centres in district hospitals.

Benefit: Patients pay less, and emergency services become faster and stronger.

5) Biopharma & Healthcare Workforce

• Biopharma Shakti initiative: ₹10,000 crore for local pharmaceutical strength.
• Allied health professionals, caregivers training expanded.

Impact: More jobs and better health support roles in India’s healthcare ecosystem.

Create a Romantic Watercolor Portrait of an Indian Couple With 100% Face Match Using AI Prompts

How the Budget Will Help Indians

Everyday Benefits

• Better primary care in your town.
• Lower medical costs for serious illnesses.
• Quicker emergency & trauma response.

For Jobs & Professionals

• New career paths in allied health sectors.
• Expanded medical education slots.

For Families

• Stronger insurance and service quality under PM-JAY.
• Improved digital health and telemedicine.

When & Where It Was Announced

The 2026-27 Union Budget was presented on 1 February 2026 in the Parliament of India by Finance Minister Nirmala Sitharaman.

Main Challenges Ahead

• India still spends about 1.8% of GDP on health, below the WHO suggestion of 2.5%.
• Doctor & nurse shortages remain in rural centres.

Final Conclusion

The MoHFW budget 2026-27 marks a meaningful step in strengthening India’s healthcare landscape. With higher funding, sharper focus on mental health, research, and infrastructure, this budget aims to make health services more accessible and affordable for all Indians.