The first full budget of Modi 3.0 government was presented yesterday by Union Finance Minister Smt Nirmala Sitharaman. The budget introduces many key reforms, including in the health sector, boosting affordability and accessibility to quality healthcare.

The Union Budget for 2025-26 has allocated significant funds to the healthcare sector demonstrating a strong commitment to improving the healthcare infrastructure in the country.

The total allocation for healthcare has increased from ₹86,582.48 crore in FY25 to ₹95,957.87 crore. A sum of ₹2,445 crore has been allocated for the Production-Linked Incentive (PLI) scheme to boost India's pharmaceutical industry.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) receives an economic boost of ₹9,406 crore. The Budget has allocated ₹4,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM).

The National Health Mission, launched in 2013, gets ₹37,226.92 crore, while the National Tele Mental Health Programme was allocated ₹79.6 crore.

Seeking to expand medical education, the budget provides for 10,000 additional undergraduate medical seats next year, and 75,000 seats to be added in the next five years. This decision to increase medical education seats is a much-needed and commendable move to further improve the doctor-patient ratio.

The Budget has prioritized a significant expansion of cancer care infrastructure to ensure access to diagnostic and treatment of cancer with establishment of Day Care Cancer Centres in all district hospitals within the next 3 years, for those in remote areas; 200 such centres will be established in the current financial year.

To make critical care more affordable, the Budget proposes reducing the cost of 36 lifesaving drugs and medicines for patients suffering from cancer, other chronic and rare diseases by fully exempting them from  Basic Customs Duty; an additional 37 drugs and 13 new patient assistance programmes (where these medicines are supplied free of cost to patients) will also be fully exempted from Basic Customs Duty.

The government also looks to promote medical tourism and “Heal In India”, in collaboration with the private sector, by simplifying visa norms in addition to capacity building. We hope India will emerge as a major global hub for medical tourism.

Here are few other key highlights from the Budget.

·        The Budget will also invest in Saksham Anganwadi and Poshan 2.0 seeking to provide nutritional support to over 8 crore children and 1 crore pregnant women, mothers and 20 lakh adolescent girls.

·        Government will launch a 6-year “Mission for Aatmanirbharta in Pulses” with special focus on Tur, Urad and Masoor.

·        A Makhana Board to be established to improve production, processing, value addition, and marketing of makhana (Lotus seeds or fox nuts). These are rich in antioxidants and other nutrients.

·        The Jal Jeevan Mission will be extended until 2028 with an enhanced total outlay.

·        Broadband connectivity to be provided to primary health centres in rural areas under the Bharatnet project.

And lastly, the much awaited relief for the middle class in personal income tax.

No income tax payable up to Rs 12 lakh (Rs 12.75 lakh for salaried tax payers with standard deduction of Rs 75,000). This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000. This should relieve stress for the middle class, at least as far as finances are concerned. Chronic stress has an adverse impact on health and well-being and it is a known risk factor for chronic diseases such as diabetes, heart disease, asthma, obesity, depression.

The revised tax rate structure under the new tax regime are as follows: