Healthcare leaders urge higher public health spending ahead of Union Budget 2026–27

 As preparations for Union Budget 2026–27 gather pace, the healthcare industry leaders and experts have called on the Government of India to significantly scale up public spending on healthcare, citing persistent gaps in infrastructure, workforce availability, and access to affordable care across the country.

In the previous fiscal year, the government allocated approximately ₹99,858.56 crore to the Ministry of Health and Family Welfare, reflecting an 11 per cent increase over the revised ₹89,974.12 crore in FY 2024–25. While the rise was welcomed, the Association of Healthcare Providers – India (AHPI) noted that public health expenditure continues to remain well below the National Health Policy target of 2.5 per cent of GDP, and lags behind benchmarks seen in comparable developing economies.

AHPI highlighted that India’s healthcare system is facing mounting pressure from a dual disease burden—communicable and non-communicable conditions—alongside rising demand for specialty, preventive, and long-term care services. The association stressed that Budget 2026–27 should prioritise strengthening healthcare delivery in rural, semi-urban, and underserved regions to advance the goal of universal health coverage.

According to the National Health Accounts, households continue to bear nearly 48 per cent of healthcare costs out-of-pocket, exposing families to financial vulnerability during medical emergencies. Against this backdrop, AHPI has urged higher public investment to expand medical and nursing education, establish additional training institutions, accelerate adult immunisation programmes, and scale up mental health, geriatric care, emergency services, and telemedicine networks. The association has also reiterated the need to rationalise GST on healthcare services and reform insurance regulations to improve affordability and coverage.

Dr. Girdhar Gyani, Director General, AHPI, stated, “To secure a healthier future for India, it is imperative to invest in robust health systems today. We urge the government to substantially enhance healthcare funding in Budget 2026–27, laying the foundation for world-class and inclusive care for every citizen. Expanding infrastructure, strengthening the workforce, and enabling equitable access to quality services, especially in tier 2 and tier 3 cities, are critical to meet the evolving healthcare needs of the nation.”

Probal Ghosal, Founder and Managing Partner GCV; Co-Founder and former Chairman of Ujala Cygnus said, “The Budget 2026 is poised at an important moment for Healthcare in India. And the key two factors to balance is speed of growth and viable penetration. I look forward to prioritising of sustainable public healthcare schemes – which could encourage ethical providers so that their efforts remain viable and sustainable. Ayushman Bharat requires earnest streamlining of digital processes. It needs the assurance and efficiency that guaranteed, time-bound reimbursements bring by easing working capital pressures, particularly for hospitals in the hinterlands. These are the places where rational package rate revisions are crucial to maintain quality care standards. Unviable reimbursements and arbitrary deductions deter upright providers; they limit patient choice and impede access nationwide.

“One expects the government to envisage a truly integrated digital ecosystem attached Ayushman Bharat Digital Mission in order to enhance data interoperability, tele-health connectivity, and operational efficiency. Such a digital platform would prove particularly useful if it helped connect a hub-and-spoke model, invigorating the workings of thousands of under-utilised and dormant primary health centres. A public-private partnership would go a long way here. Such a robust healthcare allocation paired with fair pricing, prompt payments, and strict oversight against malpractices will rebuild trust and significantly expand quality healthcare access across India.”

Dr. Sunil K Khetarpal, Deputy Director General, AHPI, added, “India’s healthcare demands are evolving faster than our current systems can support. The upcoming budget must accelerate investments in technology-driven care, quality assurance, and hospital capacity-building. Strengthening regulatory frameworks and enabling long-term financing for healthcare providers will be essential to create a resilient, future-ready ecosystem capable of serving a billion-plus population.”

Echoing the need for collaborative growth, DR. V. K. GUPTA, Founder-Director Silverstreak Superspeciality Hospital said, “Budget 2026–27 presents a critical opportunity to bridge regional healthcare disparities. Targeted fiscal incentives and easier access to long-term capital can encourage hospitals to expand into tier 2 and tier 3 cities, improving access to quality care while easing pressure on metropolitan healthcare systems.”

AHPI further emphasised that incentivising private sector participation in healthcare infrastructure development will be key to complement public investment. With India’s doctor-to-patient ratio still below World Health Organization norms, the association views the upcoming budget as a pivotal moment to strengthen system resilience, improve preparedness for future public health challenges, and ensure equitable access to quality healthcare nationwide.