Healthcare spending
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Moneycontrol02-02-2026, 20:56

Budget 2026: Public Health Spending Woes Persist Amidst Grand Ambitions

  • Despite ambitious goals for biopharma and medical services, India faces a significant mismatch in public health spending.
  • The Ministry of Health & Family Welfare's allocation increased by nearly 10% to Rs.1,06,530 crore, but the previous year saw a 4% cut from the original Budget Estimate.
  • The 2017 National Health Policy aimed for 2.5% of GDP on public health by 2025, yet current spending remains stagnant at 0.29% to 0.31% of GDP.
  • Jan Swasthya Abhiyan India (JSAI) highlights consistent underspending by MoHFW, with Rs.1,32,749 crore surrendered over five years.
  • CAG audits reveal health-related cesses are often diverted to the Consolidated Fund of India, lacking transparency for healthcare use.

Why It Matters: India's public health system is hampered by persistent low spending and unspent funds, despite ambitious healthcare goals.

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