Finance Minister Nirmala Sitharaman, while presenting the Union Budget for the fiscal year 2026-27 on Sunday, unveiled a comprehensive healthcare package aimed at transforming India's medical landscape. Among the key announcements was the introduction of a new scheme to establish five regional medical hubs across the country, developed in collaboration with the private sector.
Integrated Healthcare Complexes to Boost Medical Tourism
These regional hubs are designed to function as integrated healthcare complexes, seamlessly combining medical care, education, and research under one roof. The initiative is strategically positioned to enhance India's appeal as a premier destination for medical tourism, leveraging advanced facilities and expertise to attract international patients.
Major Boost for Allied Healthcare Professionals
In a significant move, the finance minister detailed plans to upgrade existing institutions for Allied Healthcare Professionals (AHPs) and establish new ones in both private and government sectors. For the first time, the Union Health Ministry has allocated a dedicated fund of Rs 1,000 crore specifically for AHPs.
This allocation will cover ten selected disciplines, including:
- Optometry
- Radiology
- Anaesthesia
- OT technology
- Applied Psychology and Behavioural Health
The initiative aims to add 100,000 AHPs over the next five years, addressing the growing demand for skilled healthcare support staff.
Enhanced Health Ministry Allocation and Care Ecosystem
The Union Health Ministry has been allocated a total of Rs 1,06,530.42 crore in the 2026–27 Budget, marking a 10 per cent increase over the previous year. Sitharaman emphasized the government's commitment to building a robust care ecosystem that encompasses geriatric and allied care services.
As part of this effort, the government plans to train 1.5 lakh caregivers in the coming year. The training curriculum will include allied skills such as wellness, yoga, and the operation of medical and assistive devices, ensuring comprehensive support for patients.
Breakdown of Health Budget Allocations
Of the total allocation to the Ministry of Health and Family Welfare, Rs 1,01,709.21 crore has been earmarked for the Department of Health and Family Welfare, while Rs 4,821.21 crore has been set aside for the Department of Health Research.
Key increases in specific allocations include:
- The allocation for AIIMS, New Delhi, has been raised from Rs 5,238.70 crore to Rs 5,500.92 crore.
- The Indian Council of Medical Research (ICMR) has been allotted Rs 4,821.21 crore, reflecting an increase of around 10 per cent.
- Funding for the National Health Mission under centrally sponsored schemes has been increased from Rs 37,100.07 crore in 2025–36 to Rs 39,390 crore in 2026–27.
Support for Flagship Health Programs
The budget also provided enhanced support for several flagship health programs:
- The allocation for Ayushman Bharat Pradhan Mantri Jan Arogya Yojna (AB PM-JAY) has been hiked from Rs 8,995 crore to Rs 9,500 crore, marking a rise of 5.6 per cent.
- The National Tele Mental Health Programme has seen a marginal increase in allocation from Rs 45 crore to Rs 51 crore.
- The National Digital Health Mission has been earmarked Rs 350 crore, up from Rs 324.26 crore in the 2026–27 fiscal.
These measures collectively aim to strengthen India's healthcare infrastructure, improve accessibility, and position the nation as a global leader in medical services and research.
