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Union health budget falls short of policy promise: Jan Arogya Abhiyan
Jan Arogya Abhiyan (JAA) is a coalition of health rights organisations, people’s movements and civil society groups.
The Union health budget for 2026–27 violates commitments under the National Health Policy and neglects public healthcare, the Jan Arogya Abhiyan (JAA), a coalition of health rights organisations, people’s movements and civil society groups, stated on Monday.
Under the 2017 National Health Policy, government health expenditure was to increase from 1.15% of GDP to 2.5% by 2025, with the Centre contributing at least 1%.
“This year’s central health budget is only 0.27% of GDP, about one-fourth of the promised level. Central spending has remained around 0.3% of GDP for the past five years,” JAA said in a statement.
The Ministry of Health and Family Welfare has been allocated just over ₹1 lakh crore, a 6% increase from last year. “After adjusting for inflation, this rise is negligible. Health should account for at least 5% of the Union budget, but it is barely 2%. Public health services are likely to remain weak, and free, quality care will continue to be out of reach for the poor and middle class,” the statement added.
JAA also flagged declining allocations for the National Health Mission (NHM), the main programme for rural and urban primary healthcare. Since 2021–22, NHM funding has fallen, and in real terms, the 2026–27 budget reflects a 19% reduction.
“Actual spending has often exceeded budgeted amounts, indicating far greater unmet need,” said health activist Kajal Jain.
Instead of strengthening public hospitals, the government is promoting insurance-based schemes such as the Pradhan Mantri Jan Arogya Yojana (PM-JAY), the group alleged. While ₹6,983 crore was spent on PM-JAY in 2024–25 against an allocation of ₹7,500 crore, funding for the scheme has been increased by 36% in the new budget.
“Evidence from India and abroad shows that insurance schemes do not ensure universal healthcare, and CAG reports have flagged serious irregularities,” said activist Dr Anant Phadke.
JAA, however, welcomed measures such as customs duty exemptions on 17 cancer drugs, trauma centres in district hospitals and the proposed NIMHANS-2 in Ranchi, but said allocations were inadequate.
“Rising medical expenses are pushing families into debt and poverty. This budget offers almost no relief to the poor and middle class,” the group said.
