Experts Flag Gaps In Health Budget Despite Big Announcements

Despite headline announcements such as a ₹10,000-crore push for biopharmaceuticals and limited customs duty relief on select cancer and rare disease medicines, besides boosting measures for medical tourism, many in the health sector feel the Union Budget 2026–27 stops short of addressing deeper systemic gaps.

Former Indian Medical Association (IMA) president Dr. Ravi Wankhedkar criticised the continued focus on pharmaceuticals at the cost of primary healthcare and public health infrastructure, warning that medical tourism initiatives would largely benefit corporate hospitals rather than ordinary citizens.

Adjusted for inflation, Dr. Wankhedkar said health spending has effectively declined, with paramedical training emerging as the lone long-term positive.

Dr. Ranga Reddy Burri, president of the Infection Control Academy of India, too sounded cautionary as he said, “from a public health perspective, gaps remain.”

The Budget 2026–27 creates strong optics, with health spending crossing the ₹1-lakh-crore mark for the first time. Investments in biopharma innovation, regional hubs, workforce expansion, mental health institutions, and limited drug-duty relief support long-term capacity and India’s global ambitions, he said.

“Yet, from a public health perspective, gaps remain. The ₹1.06-lakh-crore outlay is barely about 1.9% of total expenditure and well below the 2.5% GDP goal. A large share comes from the health cess, raising concerns about real increases. Prevention, primary care, AMR control, pandemic readiness, and frontline workers continue to receive inadequate attention,” said Dr. Burri.

“Prevention and preparedness must become a real budgetary priority,” he said.

Dr. Aman Puri, founder of Steadfast Nutrition, while welcoming the launch of the Biopharma Shakti strategy—which he said aims to make India a global hub for biopharmaceutical manufacturing—noted that treating diseases alone is not enough.

Preventing them is equally important, and this is where the budget falls short. Spending on preventive healthcare remains low. The National Health Mission, which supports screening, early diagnosis, counselling, awareness, and disease control programmes, has seen only a small increase of 5.8 per cent.

Puri also lamented that overall government spending on healthcare continues to stay below 2 per cent of the GDP. This is far from the 2.5 per cent target promised in the National Health Policy 2017. The total allocation of about ₹1.06 lakh crore for the health ministry, though higher than last year, may not be sufficient to meet the needs of India’s growing population, especially given poor medical infrastructure in villages and smaller cities.

On a positive note, he appreciated the plan to set up 1,000 accredited clinical trial sites, which could make India a global centre for medical research. The focus on Ayush and efforts to expand and train the healthcare workforce are also welcome steps that can improve healthcare delivery.

Dr. Ankita Mittal, Founder and Director of Adrita Menopause Wellness, Gurugram, said, “The increased focus on mental health in this year’s budget is certainly a welcome and much-needed step. However, as a gynaecologist and menopause specialist, I was hoping to see a more comprehensive commitment to women’s health. Menopause impacts millions of women physically, emotionally, and socially, yet it continues to remain under-recognised and under-funded. It is high time that dedicated resources are allocated towards creating awareness, education, and structured support systems for women going through menopause.

“This support must reach women across both urban and rural communities, ensuring equitable access to care.”

Former NITI Aayog bureaucrat Dr. Urvashi Prasad, who is battling stage-four lung cancer, voiced concern over the cut in funding for air pollution control. “This is worrying,” she said, noting that many studies link toxic air to cancer and other serious diseases. Dr. Prasad, a non-smoker, is herself battling stage-four lung cancer.

She said people breathe polluted air every day—at home, on the roads, and at work—yet the money to clean it up has been reduced. Associated with the Indian Cancer Society (ICS), Dr. Prasad added, “If the government truly wants to reduce cancer, it must invest not just in treatment but also in prevention like ensuring clean air. Otherwise, cancer cases will keep rising and families will continue to suffer.”

Dr. Sunil Kumar, Clinical Psychologist and founder of Mind Zone, said that even as the budget proposes a 50 per cent increase in trauma care capacity across district hospitals and a landmark expansion of mental health services—including the establishment of NIMHANS-2 in North India, alongside upgrades to institutes in Ranchi and Tezpur—the availability of adequate and quality human resources remains a major issue. “There is a need to pay focussed attention in this direction too. In fact, many government health institutions are grappling with shortage of doctors and specialists.”

Dr. Nitesh Rohatgi, Principal Director of Medical Oncology at Fortis Hospital, said the customs duty cuts—which largely apply to medicines used in the third and fourth stages of cancer—are welcome. But patients diagnosed in the first and second stages should also receive similar relief so that the financial burden of treatment is reduced and they are able to continue therapy. Often, many patients—particularly those from poor and middle-class families—discontinue follow-ups because they cannot afford the cost, which in turn pushes them into more advanced stages of the disease.

Vivek Sharma, Social Entrepreneur & Founder of Uhapo Health Services, expressed similar views, adding that, “Any step that lowers the cost of cancer medicines is welcome. But for most families, the real pain is the full out-of-pocket bill—tests, scans, travel, repeated hospital visits, and long courses of treatment. When a drug is still expensive and the treatment runs for months, duty cuts alone won’t protect a household. What people need is insurance that actually works on the ground—faster approvals, fewer denials, and package rates that match real costs.

“And honestly, if we want to change outcomes, we have to invest much more in early detection—organised screening, affordable diagnostics, and a clear referral pathway at the district level. That’s where lives are saved, and that’s where the system finally becomes patient-first.”

According to the recent Economic Survey 2025-26, India needs ₹2.25 lakh crore more every year to bridge gaps in public health service delivery, and another ₹1.31 lakh crore to meet shortfalls in health infra.