Punjab Health Budget Hike Falls Short, Experts Warn of Rural Infrastructure Gaps
Despite an increase in Punjab's health budget for the financial year 2026-27, health experts are raising alarms that the allocation may still be inadequate to tackle critical infrastructure deficits and shortages of medical personnel, particularly in underserved rural regions. The public health system continues to grapple with significant challenges, highlighting a widening gap between demand and available services.
Budget Allocation Details and Key Schemes
Finance Minister Harpal Singh Cheema proposed a budgetary allocation of Rs 6,879 crore for the health sector in 2026-27, up from Rs 5,598 crore in the previous year. A substantial portion, Rs 2,000 crore or nearly 29% of the health budget, is earmarked for the Mukhya Mantri Sehat Yojana. This universal health insurance scheme provides cashless treatment of up to Rs 10 lakh annually per family at over 900 government and empanelled private hospitals, benefiting an estimated 65 lakh families across the state.
Additional allocations include Rs 750 crore for the National Rural Health Mission and Rs 351 crore to expand the network of Aam Aadmi Clinics (AACs). The government plans to open 143 new AACs and upgrade 308 subsidiary health centres to AACs, bringing the total to 1,432 over five years. Furthermore, Rs 175 crore is set aside for cancer and drug addiction treatment infrastructure, and Rs 60 crore for Punjab Urban Health Infrastructure.
Medical Education and Infrastructure Investments
In a bid to strengthen tertiary care, the budget allocates Rs 1,220 crore for medical education and research. Ongoing projects include trauma centres, hostels, and residential facilities at Government Medical Colleges in Patiala and Amritsar, with funding provided for 2026-27. The Punjab Institute of Liver and Biliary Sciences in Mohali is also being expanded, with plans to complete a diagnostic block and develop a 175-bedded hospital.
The government has proposed establishing seven new medical colleges in Hoshiarpur, Kapurthala, Sangrur, Nawanshahr, Lehragaga, Malerkotla, and Ludhiana, which will add 600 MBBS seats. To support this, 38.5 acres of land were purchased for Rs 49 crore in Malerkotla for a new medical college.
Expert Criticisms and Concerns
Health experts, however, question the sufficiency of the overall allocation. Dr. Arun Mitra, president of the Indian Doctors for Peace and Development (IDPD), and Dr. Inderveer Singh Gill noted that the Rs 6,879-crore health budget out of a total state budget of Rs 2,60,437 crore appears inadequate. They argue that a large portion will be consumed by the insurance scheme and routine expenses like salaries, leaving limited funds for infrastructure strengthening or service expansion. "With costs rising steadily, such an allocation is unlikely to deliver the improvements people expect in the healthcare sector," they stated.
Amulya Nidhi, national convener of Jan Swasthya Abhiyan India, labeled the allocation meagre, asserting it won't bridge existing gaps. He emphasized that instead of relying heavily on an insurance-based model, the government should focus on enhancing free public health services. While praising efforts at the primary healthcare level through AACs, he called for a similar approach at the tertiary care level, ensuring adequate manpower, medicine availability, and robust hospital infrastructure.
Education Budget Highlights
In related news, the government allocated Rs 19,279 crore to education, marking a 7% increase from the previous year. Key initiatives include:
- Rs 1,435 crore for Samagra Shiksha Abhiyan
- Rs 690 crore for school infrastructure improvements, including whitewashing and beautification
- Rs 467 crore for the PM Poshan Scheme
- Rs 300 crore for the PM SHRI Scheme
- Rs 121 crore for Rashtriya Uchchatar Shiksha Abhiyan (RUSA)
The Sikhya Kranti 2.0 initiative, with an outlay of Rs 3,500 crore over six years, aims to transform the education system. Additionally, Rs 1,760 crore is earmarked for grant-in-aid to universities and constituent colleges to support academic excellence and research, while Rs 569 crore is proposed for technical education initiatives.
