Union Budget 2025-26 for Healthcare: ₹99,858.56 Crore to Save Millions & Conquer Cancer

On Saturday, Union Finance Minister Nirmala Sitharaman delivered the 2025-26 Union Budget in Parliament, marking her eighth consecutive presentation of the annual budget.

₹99,858.56 Crore Allocated to the Health Ministry:

A significant portion of the budget is dedicated to healthcare, with ₹99,858.56 Crore allocated to the Ministry of Health and Family Welfare. This amount represents a 191% increase since 2014-15, showcasing the government's strong commitment to improving the health and well-being of citizens. The Union Health Ministry shared this announcement, highlighting the progress made in healthcare funding over the years.

Expansion in Medical Education and Cancer Treatment:

The government has added 1.1 lakh medical undergraduate and postgraduate seats since 2014. Finance Minister Sitharaman announced that 10,000 additional medical seats will be introduced next year. The budget also includes plans to establish daycare cancer centers in all district hospitals over the next three years. To support cancer and rare disease patients, the government will fully exempt 36 life-saving drugs from customs duties, while six more will enjoy concessional customs duties.

Increased Support for Nutritional Programs:

The budget also addresses nutritional support for vulnerable populations, including children, pregnant women, lactating mothers, and adolescent girls. Programs like Saksham Anganwadi and Poshan 2.0, which already serve millions in aspirational and northeastern districts, will receive increased financial support to enhance the nutritional status of these groups.

Promoting Medical Tourism in India:

The government aims to position India as a global leader in medical tourism. By partnering with the private sector, the initiative seeks to attract international patients, creating economic opportunities and strengthening the healthcare and hospitality sectors. Medical tourism is expected to improve healthcare infrastructure, encourage investment in advanced technology, and enhance the quality of care available in India. This push also aims to boost the global reputation of India’s healthcare system, including the promotion of traditional treatments like Ayurveda.

Exemption of Basic Customs Duty on Life-Saving Drugs:

The budget proposes that 36 life-saving drugs will be fully exempt from Basic Customs Duty (BCD), helping reduce the financial burden on patients. Additionally, six critical medicines will receive a concessional customs duty of 5%. The finance minister also announced that 37 more medicines will be added to the list of those exempt from customs duty, further easing treatment costs for patients.

Empowering People Through Accessible Healthcare:

In her budget speech, Sitharaman emphasized that the vision of a "Viksit Bharat" (Developed India) cannot be achieved without quality, affordable, and accessible healthcare. She underscored the government's focus on people-centric policies, with notable initiatives in medical education, cancer care, and the availability of life-saving drugs. The planned addition of 10,000 medical seats next year, with a target of 75,000 seats over the next five years, is aimed at improving the doctor-patient ratio.

The establishment of 200 new cancer centers will also improve oncology care across India. Exempting critical drugs from customs duties is expected to make cancer and rare disease treatments more affordable. Sitharaman also emphasized the "Heal in India" initiative, aimed at enhancing the country’s reputation as a global healthcare hub.

Addressing the Growing Challenge of Cancer in India:

Recognizing the increasing burden of cancer, Medanta Hospitals MD Naresh Trehan commended the government’s decision to remove customs duties on cancer drugs, which will help reduce the cost of treatment. Trehan noted that the government’s move to create 10,000 additional medical education seats and expand cancer care infrastructure is a positive step toward addressing the rising demand for cancer treatment and medical professionals.

Welcoming Reforms in Healthcare:

Healthcare experts, including D.S. Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre, expressed their support for the government’s initiatives, including the creation of daycare cancer centers in district hospitals and the addition of 75,000 medical seats over the next five years.

Negi also welcomed the introduction of broadband connectivity in primary healthcare centers, which will improve access to healthcare services in rural areas. The exemption of 36 life-saving drugs from basic customs duties, along with six more medicines under concessional duties, is expected to make essential treatments more affordable.

Increased Budget Allocation for Health and Family Welfare:

The allocation for the Department of Health and Family Welfare has grown by 85% from ₹47,353 crore in 2017-18 to ₹87,657 crore in 2024-25. Additionally, the 15th Finance Commission has granted ₹70,051 crore in health-related grants to local governments.

For the fiscal year 2024-25, the Indian government had allocated ₹90,958 crore for healthcare, marking a 2% increase from the previous year. These funds are focused on improving healthcare infrastructure, strengthening ongoing health programs, and enhancing maternal and child health initiatives under the National Health Mission.

(Input from various sources)

(Rehash/Sai Sindhuja K/MSM)