By Admin 
Union Budget 2026-27: Union Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2026-27 on 1 February. This time, there will be many important challenges before him in the budget, in which expansion of medical infrastructure and providing treatment to the common people at concessional rates can be the main issues. Government expenditure on health is still very low in most developing countries, including India, compared to developed countries, even though better health services are the foundation of any strong economy.
It is clear from the World Bank’s 2022 report that there is a big difference between countries in terms of expenditure on health. America spends about 17 to 18 percent of its GDP on health services, which comes to about 12 to 13 thousand dollars per person. However, the public health system there is weak and dependence on the private sector is high. Japan spends 10 to 11 percent of its GDP on the medical sector, where per capita spending ranges from $4,500 to $5,000 and public health services are considered very strong.
How much is spent on medical treatment in which country in the world?
Russia spends about 5 to 6 percent of its GDP on health, with per capita spending between $800 and $1,000, but there is inequality in the quality of services. China has rapidly increased investment in health infrastructure in the last decade and spends 6 to 7 percent of GDP on the medical sector, bringing per capita spending to $700 to $900.
In comparison, India spends only 3 to 4 percent of GDP on health and the per capita expenditure is only between 100 to 200 dollars. However, efforts are being made to gradually improve the situation through schemes like Ayushman Bharat.
| Country | GDP expenditure on health (%) | Per Capita Health Expenditures (USD) |
| America | 16.8% | 12,000 |
| Japan | 11 | 4,150 |
| Russia | 5.3 | 1,474 |
| China | 5.0 | 731 |
| India | 3.6 | 209 |
How was India’s last medical budget?
Talking about previous budgets, the government has increased focus on digital health, medical infrastructure, domestic production and affordable medicines. In the budget for the financial year 2025-26, about Rs 1 lakh crore was allocated for the Health Ministry, which was about 11 percent more than the previous year. In this, expansion of Ayushman Bharat, exemption in custom duty on cancer medicines, establishment of new medical colleges and additional funds for institutions like National Health Mission and AIIMS were announced.
When and how much is spent on the budget in India?
| Year | Health Budget (Rs crore) |
| 2022-23 | 86,606 |
| 2023-24 | 88,956 |
| 2024-25 |
90 thousand crores |
| 2025-26 |
99,858.56 |
What do experts say
Regarding the Medical Budget 2026-27, experts believe that the share of GDP on health should be further increased. According to Dr. Sharad Aggarwal, former president of the Indian Medical Association (IMA), health expenditure should be clearly shown under different heads in the budget, so that it can be known how much is being spent on infrastructure development and how much is going on salaries and other administrative items. He says that it is very important to pay special attention to infrastructure development.
Dr. Aggarwal also suggested that medicines, medical equipment and surgical products should be taken out of the purview of GST, so that the cost of treatment can be reduced. Along with this, relief should also be given in the customs duty imposed on medical equipment. He said that just as tax exemption is given on life insurance, similarly health insurance should also be promoted by giving additional tax exemption.
He believes that after Covid-19, there has been improvement in the medical infrastructure in the country, but a lot of work still remains to be done in remote areas. There is a need to focus on the quality and availability of ambulance services, oxygen plants, solar panels, generators, operation theatres, ventilators and other essential equipment. Many ventilators installed during the Covid period are lying defective today because their quality was not good. Therefore, it is important that there is strict monitoring of expenditure under the health budget and an independent, impartial body can check its implementation and quality.
Also read: Gold is shining brighter due to Trump’s threats, know the latest price of your city today on January 19