Union Budget 2026: Health outlay raised 10%, government plans 5 regional medical hubs, boost for AHPs

Finance Minister Nirmala Sitharaman, presenting the Union Budget on Sunday, announced a new scheme to support states in setting up five regional medical hubs in partnership with the private sector. These hubs will function as integrated healthcare complexes, combining medical care, education, and research, and aim to position India as a leading destination for medical tourism.The minister said existing institutions for Allied Healthcare Professionals (AHPs) will be upgraded, and new AHP institutions will be established in both private and government sectors. For the first time, the Union Health Ministry has allocated Rs 1,000 crore specifically for AHPs.“This will cover 10 selected disciplines, including Optometry, Radiology, Anaesthesia, OT technology, Applied Psychology and Behavioural Health, and add 100,000 AHPs over the next five years,” the finance minister said. The Union Health Ministry has been allocated Rs 1,06,530.42 crore in the 2026–27 Budget, marking a 10 per cent increase over the previous year.Sitharaman said the government will build a strong care ecosystem encompassing geriatric and allied care services, and train 1.5 lakh caregivers in the coming year. The training will cover allied skills such as wellness, yoga, and the operation of medical and assistive devices.Of the Rs 1,06,530.42 crore allocated 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.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. Among centrally sponsored schemes, funding for the National Health Mission has been increased from Rs 37,100.07 crore in 2025–36 to Rs 39,390 crore in 2026–27.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. Meanwhile, the National Tele Mental Health Programme has seen a marginal increase in allocation from Rs 45 crore to Rs 51 crore, and the National Digital Health Mission has been earmarked Rs 350 crore, up from Rs 324.26 crore in the 2026–27 fiscal.