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06 Feb 2026 : More, and less

Article 2: More, and less

Why in news: Union Budget 2026–27 increased health allocations and launched Biopharma SHAKTI, but drew criticism for low health spending as a share of GDP and for missing the National Health Policy target despite rising public health needs.

 

Key Details

  • Health allocation ₹1.05 lakh crore, a 10% rise, but only 0.26% of GDP
  • Biopharma SHAKTI launched with ₹10,000 crore to boost biologics and biosimilars manufacturing
  • Plan for 1,000 clinical trial sites, new NIPERs and expanded mental health institutes
  • Training of 1 lakh allied professionals and 1.5 lakh elderly care workers announced
  • Criticism over failure to reach 2.5% of GDP health spending target and cuts to National Health Mission

 

Overall Health-Care Spending

  • Budget 2026 fell short of expectations as a milestone year for health spending
  • Total allocation ₹1.05 lakh crore, about 10% higher than last year (RE)
  • Still only 1.9% of total government expenditure and ~0.26% of GDP

 

Flagship Initiatives and Infrastructure

  • Biopharma SHAKTI Scheme launched with ₹10,000 crore outlay over five years
  • Aims to make India a global hub for biologics and biosimilars
  • Plan to establish 1,000 accredited clinical trial sites nationwide
  • Addresses long-standing gaps in health R&D capacity

 

Institutional Expansion

  • Three new NIPERs to be set up; seven existing units modernised
  • Second NIMHANS campus planned in north India
  • Two upgraded national mental health institutes announced

 

Human Resources for Health

  • Target to train 1 lakh allied health professionals over five years
  • Additional 1.5 lakh care workers to support the ageing population
  • Timely move as India moves towards a grey nation with falling fertility

 

Affordability Measures

  • 17 cancer drugs and treatments for rare diseases exempted from customs duties
  • TCS on medical and education remittances reduced from 5% to 2%
  • Expected to improve treatment affordability for patients and families

 

Key Criticisms and Concerns

  • Failure to meet National Health Policy 2017 target of 2.5% of GDP by 2025
  • Reduced allocation for National Health Mission, despite strong utilisation
  • Concerns that declining Central share, despite higher State spending, may cause uneven health outcomes nationwide

 

Conclusion

Budget 2026–27 reflects a mixed health policy approach—strong focus on biopharma, research and workforce expansion, but overall public health spending remains inadequate. The failure to raise expenditure towards 2.5% of GDP risks uneven outcomes. Without sustained central investment, affordability, equity and universal health coverage goals may remain only partially fulfilled.

 

Descriptive question:

Discuss how Union Budget 2026–27 balances targeted health-sector initiatives with the challenge of inadequate public health spending, and examine its implications for equity, affordability and long-term health system strengthening in India. (250 words, 15 marks)