Budget 2025: Finance Minister Nirmala Sitharaman presented the Union Budget 2025 today. The healthcare sector received a total allocation of ₹98,311 crore, up by 9.8 percent from ₹89,287 crore in the previous fiscal year. The Budget prioritises expanding medical care and infrastructure.
The government has also allocated ₹2,445 crore for PLI for the pharmaceutical industry. The sector saw a 191% increase in budgetary allocation from ₹34,286 crore in FY14-15.
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) got an allocation of ₹9,406 crore. The government has allocated ₹4,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM).
The government allocated ₹37,226.92 crore crore to the National Health Mission (NHM). The National Tele Mental Health Programme was allocated ₹79.6 crore. The Union Budget allocated ₹20,046.07 crore for autonomous bodies. The allocation for All India Institute of Medical Sciences (AIIMS), Delhi, was increased to ₹5,200 crore.
During her Budget 2025 speech, Sitharaman said that 200 cancer centres in 2025-26. The government will facilitate the setting up of daycare cancer centres in all district hospitals in the next three years.
36 life-saving drugs have been exempted from Basic Customs Duty, while six others will see a reduced 5 per cent customs duty, making essential medicines more affordable, she announced.
In July last year, after the Lok Sabha elections, The Health Ministry was allocated Rs 90958.63 crore in the Union Budget 2024-25. The Ministry has witnessed a hike of 12.9 per cent over 80,517.62 crore in the Budget (revised estimates) for 2023-2024. During her Budget 2024 speech, Sitharaman proposed that three cancer treatment medicines be exempted from basic customs duty completely to help patients with cancer. She also proposed changes in the basic customs duty for X-ray tubes and Flat panel detectors for use in medical X-ray machines “under the phased manufacturing programme to synchronise them to domestic capacity addition.”
Out of Rs 90958.63 crore, the Department of Health and Family Welfare has been allocated Rs. 87656.90 crore and the Department of Health Research has been allocated Rs. 3301.73 crore.
The Health Ministry has been allocated Rs 90,658.63 crore in the interim Budget for 2024-2025. Out of Rs 90,658.63 crore, Rs 87,656.90 crore has been allocated to the Department of Health and Family Welfare while Rs 3001.73 crore to the Department of Health Research. The Budget allocation for the AYUSH ministry has been hiked from Rs 3,000 crore to Rs 3,712.49 crore, recording a 23.74 per cent increase. During her interim budget speech, Sitharaman announced that healthcare cover under the Ayushman Bharat insurance scheme will be extended to all ASHA and Anganwadi workers and helpers. Sitharaman also announced that the government will encourage vaccination for girls in the 9-14 year age group for the prevention of cervical cancer.
In FY2023-24, the expenditure of the Ministry of Health and Family Welfare was estimated to be Rs 89,155 crore, a 13 percent increase from revised estimates for 2022-23. The National Health Mission is its largest component, accounting for 33 percent of the Ministry’s budget, and medical colleges and hospitals account for 27 percent of the budget. High out-of-pocket expenditures and a shortage of healthcare personnel continues to be major issues.
