Union Budget 2025: Healthcare Gets 9.78% Boost, Allocation Nears 1 Lakh Crore

India Pharma Outlook Team | Monday, 03 February 2025

The Union Budget 2025 has proposed a 9.78 per cent rise in funding for healthcare for the fiscal year 2025-26, amounting to Rs. 99,858.56 crore in contrast to Rs. The ministry of health and family welfare states that the amount will be 90,958.63 crore in the year 2024-25.

From the overall Budget Estimate (BE) for the fiscal year 2025-26, approximately Rs. The department of health and family welfare has an allocation of 95,957.87 crore, whereas Rs 3,900.69 crore is designated for the Department of Health Research.

The Ministry announced that the budget for Pradhan Mantri Jan Arogya Yojana (PMJAY) in BE 2025-26 is set at Rs. 9,406 crore represents a rise of approximately 29 percent from the Rs. 7,300 crore set aside in the BE phase for 2024-25. This is anticipated to enhance access to healthcare, it stated.

Funding for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) increased by 26.7 percent to Rs. 4,758.45 crore for BE 2025-26, in contrast to Rs. 3,756.47 crore set aside according to BE 2024-25, to enhance the healthcare infrastructure. From the overall distribution, Rs. 4,200 crore is allocated for Capital expenditure under Centrally sponsored schemes.

The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) aimed at healthcare infrastructure will receive a funding of Rs. 9,940 crore allocated for the creation of new All Indian Institutes of Medical Sciences (AIIMS) in BE 2025-26, reflecting a 10.4 percent rise from BE 2024-25.

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