By Admin 
Health Budget 2026-27: The Union Finance Budget 2026-27 is to be presented on February 1. This budget is being considered very important from the economic development of the country and the strength of various sectors. Talking about the health sector, this time the health sector has many expectations from the Finance Minister in the direction of strengthening the better and accessible health system.
If we look at the budgetary figures of the last four years, there has been a continuous increase in government expenditure on the health sector. About Rs 99,858.56 crore was spent on health in the financial year 2025-26. Earlier this figure was around Rs 90,000 crore in 2024-25, Rs 88,956 crore in 2023-24 and Rs 86,606 crore in 2022-23.
India’s health expenditure is less compared to developed countries
However, compared to developed countries, expenditure on health sector in India as a proportion of GDP is still quite low. According to the World Bank’s 2022 report, India spends only 3 to 4 percent of its GDP on health services. At the same time, in America this expenditure is about 17 to 18 percent. Japan spends about 10 to 11 percent of its GDP, while Russia spends 5 to 6 percent on the health sector.
China is also rapidly expanding its health infrastructure and is spending about 7 percent of its GDP on health services.
Expectations from the health sector of mid-sized hospitals
On this subject, Dr. V.S., Chairman and Managing Director of Prakash Hospital, Noida. Chauhan says that as the demand for health services is increasing in areas outside the metros, it is very important to encourage hospital-based development in the Union Budget 2026. This requires easy access to cheap capital, faster regulatory approvals and realistic reimbursement mechanisms.
He said that delay in payments under government health schemes affects the reinvestment ability of hospitals and slows down the pace of expansion of new health facilities. Developing infrastructure, increasing the number of health workers, and implementing targeted incentive policies to drive digital health adoption will not only strengthen implementation, but also increase efficiency and reduce cost pressures on both service providers and patients.
Mid-sized and secondary hospitals are the backbone of the health sector.
Dr. V.S. According to Chauhan, mid-sized and secondary hospitals are the backbone of India’s healthcare system, but policy support is often limited to tertiary care. To correct this imbalance in the Union Budget 2026, increase in budget allocation for health sector, rationalization of GST on medical equipment and inputs and timely and transparent payment system under Pradhan Mantri Jan Arogya Yojana (PMJAY) should be ensured.
Additionally, a clear framework for affordable financing, land availability and regulatory approvals will improve the operational efficiency of hospitals, promote balanced expansion and help control patient costs amid ever-increasing medical inflation.
Also read: Before the budget, Nirmala presented the Economic Survey 2025-26 in the Lok Sabha, GDP is estimated to be 6.8% to 7.2%.
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