Health sector likely to get higher priority in Union Budget

The government is expected to place greater emphasis on the health sector in the Union Budget 2026, recognising that quality healthcare is a cornerstone of a strong and resilient economy. Increased public spending on healthcare is likely, with a focus on easing the financial burden of medical expenses on ordinary citizens.

Sources indicate that the budget may prioritise expansion of public healthcare infrastructure, including an increase in the number of government hospitals and strengthening of health facilities in rural and underserved areas. Improving access to affordable medicines and expanding the coverage of flagship schemes such as Ayushman Bharat are also expected to receive attention.

With per capita healthcare costs rising, the government may focus on both boosting healthcare spending and expanding medical infrastructure to meet growing demand. Compared to developed nations, India’s public expenditure on healthcare remains relatively low, especially for a developing economy, prompting calls for sustained investment in the sector.

The pharmaceutical industry is also facing global challenges, particularly in the wake of tariff pressures imposed during the Trump administration, which have impacted international trade dynamics. Against this backdrop, the government is expected to continue supporting domestic pharmaceutical manufacturing, along with digital health initiatives.

In the previous budget, the government had placed strong emphasis on digital health, healthcare infrastructure, domestic production, and affordable medicines. For the 2025–26 financial year, the Health Ministry was allocated nearly Rs 1 lakh crore, marking an increase of about 11 per cent compared to 2024–25.

That allocation included measures such as the expansion of Ayushman Bharat, customs duty exemptions on cancer medicines, the establishment of new medical colleges, and enhanced funding for institutions under the National Health Mission and AIIMS.

With rising healthcare needs and global uncertainties, the health sector is expected to remain a key focus area in the Union Budget, as the government seeks to strengthen medical infrastructure while ensuring affordable and accessible healthcare for all.