Union Budget 2026: Increased Health Outlay and Plans for Five Regional Medical Hubs to Support AHPs
Finance Minister Nirmala Sitharaman unveiled a comprehensive healthcare initiative during the Union Budget presentation on Sunday. The plan includes the establishment of five regional medical hubs in collaboration with the private sector, aimed at enhancing India’s position in medical tourism. Additionally, the budget allocates significant funds for the development of allied healthcare professionals and the expansion of existing healthcare institutions, reflecting a strong commitment to improving the nation’s healthcare infrastructure.
New Regional Medical Hubs
In a significant move to bolster India’s healthcare system, Finance Minister Nirmala Sitharaman announced the creation of five regional medical hubs. These hubs will serve as integrated healthcare complexes, combining medical care, education, and research. The initiative aims to attract international patients and position India as a premier destination for medical tourism. By partnering with the private sector, the government seeks to enhance the quality and accessibility of healthcare services across the country. This strategic approach is expected to not only improve healthcare delivery but also stimulate economic growth through increased medical tourism.
Investment in Allied Healthcare Professionals
The Union Budget has earmarked Rs 1,000 crore specifically for the development of Allied Healthcare Professionals (AHPs). This funding will facilitate the upgrading of existing AHP institutions and the establishment of new ones in both the private and government sectors. The initiative will cover ten selected disciplines, including Optometry, Radiology, and Applied Psychology, with the goal of training 100,000 AHPs over the next five years. This marks a significant investment in the healthcare workforce, addressing the growing demand for skilled professionals in various healthcare fields.
Increased Funding for Health Initiatives
The Union Health Ministry’s budget allocation for the 2026-27 fiscal year has been set at Rs 1,06,530.42 crore, reflecting a 10 percent increase from the previous year. Of this amount, Rs 1,01,709.21 crore is designated for the Department of Health and Family Welfare, while Rs 4,821.21 crore is allocated for the Department of Health Research. Notably, funding for the All India Institute of Medical Sciences (AIIMS) in New Delhi has increased from Rs 5,238.70 crore to Rs 5,500.92 crore. Additionally, the Indian Council of Medical Research (ICMR) has received a budget boost of around 10 percent, underscoring the government’s commitment to advancing medical research and healthcare services.
Focus on Geriatric and Mental Health Care
The budget also emphasizes the importance of geriatric care and mental health services. The government plans to train 1.5 lakh caregivers in the upcoming year, equipping them with skills in wellness, yoga, and the operation of medical devices. Funding for the National Health Mission has increased from Rs 37,100.07 crore to Rs 39,390 crore, while the allocation for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojna has risen from Rs 8,995 crore to Rs 9,500 crore. Furthermore, the National Tele Mental Health Programme and the National Digital Health Mission have also received increased funding, highlighting the government’s focus on enhancing mental health resources and digital health initiatives in India.
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