Union Budget 2026-27: From education to health sector, huge expectations are being expressed regarding the Union Budget 2026 to be presented by Union Finance Minister Nirmala Sitharaman on 1 February. On one hand, there is a demand for increasing expenditure on health infrastructure, research and development and public health services, on the other hand, special focus is expected on quality and skill-based reforms in the field of education and higher education.

In the last financial year 2025-26, the budget allocation for health services was increased by 9.8 percent to Rs 99,858.56 crore, while in the financial year 2024-25 this amount was Rs 90,958.63 crore.

Major demands of health sector

Dr. P.R., President of IIHMR University. Sodani says that large scale investment is needed to strengthen the health sector. Under this, special attention should be given to human resources, digital transformation and strengthening infrastructure. To reduce the out-of-pocket health expenditure of the common people, a significant increase in government expenditure on public health is necessary.

He said that the capacity and skills of human resources should be strengthened by making effective use of the increased public health expenditure, so that qualified talent can be attracted to this sector. Promoting training and capacity building will accelerate better management of health services as well as research and development and digital health transformation.

Expectations of education sector

Talking about the education sector, Rs 1,28,650.05 crore was allocated for it in the financial year 2025-26, which was about 6.5 percent more than the previous year. This includes Rs 78,572 crore for school education and Rs 50,078 crore for higher education. Apart from this, Rs 500 crore was allocated for Artificial Intelligence (AI) research.

Pankaj Priya, deputy director and dean (academics), Birla Institute of Management Technology (BIMTECH), Greater Noida, said that merely addressing the lack of cognitive skills in the education sector is not enough. When the central government is taking forward the skilling agenda at the national level, then its responsibility cannot be left only to the state governments.

He said that there is an urgent need to adapt the curriculum at the higher education level to emerging technologies like Industry 4.0, Generative AI and Machine Learning. The National Education Policy 2020 also recognizes this change and aims to connect at least 50 percent of students in school and higher education with skill-based education by the year 2025.

Emphasis on quality in education is necessary

According to Pankaj Priya, the Economic Survey 2024-25 shows that the number of colleges has increased by 13.8 percent in the last eight years and the Gross Enrollment Ratio (GER) has increased from 23.7 percent to 28.4 percent. However, the next phase of reforms should not be limited to just increasing access, but should focus on quality of education, deep research capacity and strong employment-oriented outcomes.

He said that Budget 2026 is an important opportunity to make India’s education system globally competitive, innovation-focused and a strong base of future-ready talent. Government initiatives focused on cutting-edge technologies can be taken maximum advantage of by promoting innovation and entrepreneurial mindset.

Also read: Will there be a cut in middle class tax? Know the expectations of investors and taxpayers from Budget 2026

The country’s general budget will be presented on 1 February 2026. This will be the ninth consecutive budget of Finance Minister Nitin Nirmala Sitharaman, which is a big record in itself. This time, the highest expectations from the budget are being placed on the health sector. In fact, after the Corona epidemic, it has become clear that the foundation of a strong economy of any country rests on a strong health system. Even today in India, the cost of treatment remains a big problem for the common man. Due to lack of facilities in government hospitals and expensive treatment in private hospitals, it is believed that the government may increase the expenditure on the health sector in Budget 2026. In such a situation, let us now tell you what is the plan to make India a global health center and after this how big will be the health budget of the country?

India’s health expenditure is still less than the world

If seen globally, India still spends less on health services. In developed countries, health constitutes a large part of GDP, whereas India’s expenditure is considered less than many developing countries. According to the World Bank’s 2022 report, India spends only 3 to 4 percent of its GDP on health services. Whereas in America this expenditure is about 17 to 18 percent. Although in the last few years, the government has focused on digital health, Ayushman Bharat Yojana, expansion of medical colleges and affordable medicines, but the need is still increasing.

What did the health sector get in the last budget?

In the budget for the financial year 2025-26, the Health Ministry had made a provision of about Rs 1 lakh crore, which was about 11 percent more than last year. In this, expansion of Ayushman Bharat scheme, exemption in custom duty on cancer medicines, extra funds for new medical colleges and institutions like AIIMS were announced. This makes it clear that the health sector is already included in the priorities of the government.

What is expected from Budget 2026?

There are great expectations regarding the health sector from the Budget 2026 to be released on 1st February. Because it plays an important role in deciding the direction of the health services of the country. Experts believe that if the government increases the health budget, it will strengthen primary health services and improve the availability of infrastructure, modern equipment and medicines in government hospitals. Apart from this, it is expected from Budget 2026 that the government will increase the number and facilities of government hospitals and strengthen the health insurance structure in rural areas. It will make medicines more affordable and expand the scope of schemes like Ayushman Bharat. Apart from this, expansion of health insurance coverage, preventive care, investment in digital health and medical research are also likely to be included in the major priorities of this budget. Greater allocation for healthcare infrastructure, technology and preventive services will improve patient outcomes, especially in tier-II and tier-III cities. There is also a widespread expectation that special attention will be paid to women and child health.

Also read: Health sector has big expectations from Budget 2026, know on which things there is a demand for focus this time.

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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%.

Check out below Health Tools-
Calculate Your Body Mass Index (BMI)

Calculate The Age Through Age Calculator