Health Budget 2025-26: Allocation, Share of GDP and Gaps
Why in the news
Budget 2025-26 named agriculture, MSMEs, investment and exports as growth drivers, but analysis showed public health spending remains weak relative to targets.
Key facts
- Combined health allocation (Health and Family Welfare, AYUSH and related Finance Ministry releases): ₹1.19 trillion.
- Share: 2.4% of the Union Budget and 0.33% of GDP.
- Spending rises 18% over 2024-25 after three years of decline, mainly from release of pending 15th Finance Commission grants.
- Finance Ministry route rises 154%, Health and Family Welfare 10%, AYUSH 8%.
- PMJAY, described as the world’s largest health assurance programme, gets a 29% budget increase and its coverage now extends to gig workers, ASHA and Anganwadi workers and everyone aged above 70.
Targets versus reality
| Benchmark | Goal |
|---|---|
| 11th Five-Year Plan (2012) | Public health spending of at least 2% of GDP |
| National Health Policy (2017) | 2.5% of GDP by 2025 |
| Actual, 2025-26 (Centre + States) | 0.79% of GDP |
Concerns
- Per capita health budget of ₹844 makes Universal Health Coverage by 2030 doubtful.
- Local body health grants need better coordination; utilisation for 2021-22 to 2023-24 was only about 50%, hinting at weak local capacity.
- Health and social sector spending keeps shrinking as a share of the budget, limiting lessons from the pandemic and slowing progress on poverty, inequality and basic care.
Exam angle
- Scheme: Ayushman Bharat PMJAY.
- Benchmarks: 2% of GDP (11th Plan) and 2.5% (NHP 2017).
- Grants linked to the 15th Finance Commission.