The Union government has raised its allocation for health sharply in 2026–27, with combined spending on health services and health research crossing Rs 1 lakh crore, driven by higher funding for hospitals, insurance coverage, public health infrastructure, workforce expansion, and biomedical research, according to the Notes on Demands for Grants tabled with the Budget.
The Department of Health and Family Welfare has been allocated a net Rs 1,01,709.21 crore for 2026–27, up from Rs 92,925.86 crore in the previous year. The increase is spread across central hospitals, medical education institutions, national health programmes, and transfers to states under centrally sponsored schemes. A significant share of the allocation continues to flow to central government hospitals and institutions, including Safdarjung Hospital, Ram Manohar Lohia Hospital, Lady Hardinge Medical College, and Kalawati Saran Children’s Hospital. Establishment expenditure of central hospitals and institutions rises to Rs 8,485.81 crore, reflecting higher operating, staffing, and infrastructure costs. Funding for new and existing AIIMS remains a major component of health spending. Establishment expenditure for new AIIMS has been provided Rs 9,302 crore, while AIIMS Delhi has been allocated Rs 5,500.92 crore. Allocations have also risen for PGIMER Chandigarh, JIPMER Puducherry, NIMHANS Bengaluru, and other autonomous medical institutions.
