Sat Feb 01 22:02:38 UTC 2025: ## India’s Union Budget 2025-26 Boosts Healthcare Spending, Focuses on Expansion and Accessibility

**NEW DELHI** – India’s Union Budget for 2025-26, presented on Saturday, allocated ₹99,858.56 crore (approximately $12 billion USD) to the healthcare sector, a 9.8% increase from the previous year. While this represents a marginal rise in the overall budget share to 1.97% (from 1.9% in FY25), it remains below 2% of the total budget.

The budget prioritizes expanding healthcare access and infrastructure. Key highlights include:

* **Extension of Ayushman Bharat:** The flagship health insurance scheme will now cover approximately 10 million gig workers, a significant segment of the burgeoning informal economy. The government will facilitate registration through the e-Shram portal. Ayushman Bharat’s allocation increased by 24% to ₹9,406 crore.
* **Increased Medical Education Seats:** 75,000 new medical seats will be added over the next five years to address the growing demand for healthcare professionals.
* **Cancer Care Enhancement:** The budget allocates funds for the establishment of 200 new cancer daycare centers in district hospitals.
* **Reduced Drug Costs:** Basic customs duty will be fully exempted on 36 lifesaving drugs, including those for cancer and rare diseases. Further reductions are planned for six specific drugs provided free to eligible beneficiaries.
* **Pharmaceutical Industry Support:** ₹2,445 crore has been allocated to the Production-Linked Incentive (PLI) scheme for the pharmaceutical industry.
* **Boost to Medical Tourism:** The government continues to support the growth of medical tourism, leveraging India’s reputation for affordable and high-quality healthcare.

While the increased allocation was welcomed, some experts expressed concerns. Dr. Sarit Rout, an economist at the Indian Institute of Public Health, noted that the increase is modest when adjusted for inflation and that several crucial programs, including the National Health Mission (which received a 4% increase), may face limitations due to insufficient funding. The Department of Health Research, however, saw an 18% increase.

Despite the positive developments, the overall allocation to health, including the Ayush ministry, remains around 2% of general government expenditure. The budget’s impact on improving healthcare accessibility, particularly in rural areas, will be closely watched.

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