UNION BUDGET 2025-26: KEY HEALTH SECTOR INITIATIVES
The Union Budget 2025-26 has allocated approximately Rs 1 lakh crore to the Ministry of Health and Family Welfare, reflecting a marginal increase in healthcare spending. The share of health in the total budget rose slightly to 1.97% from 1.9% in the previous year, though it remains below the National Health Policy (2017) target of 2.5% of GDP.
Key Measures to Promote Health
- Tax on Ultra-Processed Foods (UPFs)
- The Economic Survey (ES) 2024-25 proposed a ‘health tax’ on UPFs to reduce their consumption.
- These foods are linked to obesity, diabetes, heart disease, and cancer.
- India has a high diabetes burden, with over 101 million affected individuals.
- Countries like Brazil, Canada, Mexico, and the UK have already implemented regulations and taxes on UPFs.
- Expansion of Cancer Care
- The government plans to establish cancer care centers in every district by 2026.
- 200 new Daycare Cancer Centers will be set up by 2025-26 to provide chemotherapy and essential treatment.
- These centers aim to reduce treatment costs and travel burdens, especially for rural populations.
- Exemptions on Life-Saving Drugs
- 36 life-saving drugs have been exempted from Basic Customs Duty (BCD) to lower costs.
- Patient Assistance Programmes (PAPs) will continue to offer free or discounted medicines for uninsured patients.
- This move will make critical medicines more affordable and accessible.
- Healthcare Coverage for Gig Workers
- The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has been expanded to include 1 crore gig workers.
- These workers will be registered on the e-Shram portal and provided ID cards for healthcare access.
- Strengthening Health Infrastructure and Workforce
- Rs 4,200 crore allocated for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).
- Five new skill centers will be established to train 3 lakh healthcare professionals annually.
- This will address manpower shortages and meet global healthcare demands.
- Women and Child Healthcare
- The PM Matru Vandana Yojana will be expanded to enhance maternal healthcare.
- Increased funding for child nutrition and vaccination programs.
- More Anganwadi centers will be upgraded with digital tracking systems to improve service delivery.
- Boost to Pharmaceutical Research
- Rs 2,445 crore allocated for the Production Linked Incentive (PLI) scheme.
- The scheme aims to promote domestic pharmaceutical manufacturing and reduce reliance on imports.
- Mental Health and Telemedicine Services
- The National Tele Mental Health Programme received increased funding.
- Expansion of telemedicine services will enhance mental healthcare accessibility across India.
- Promotion of Medical Tourism
- The government plans to ease visa procedures for medical tourists.
- India’s medical tourism industry is valued between USD 7.56 billion and USD 10.4 billion in 2024.
- The ‘Heal in India’ initiative, launched in 2023, will be strengthened to attract more foreign patients.
Economic Survey 2024-25 Recommendations on UPFs
- Clear Regulations: The Food Safety and Standards Authority of India (FSSAI) should define UPFs clearly and set labeling standards.
- Stronger Monitoring: Enforce strict monitoring of branded food products to prevent misleading health claims.
- Consumer Protection: Strengthen laws to regulate aggressive marketing, particularly those targeting children.
- Higher Taxation: Consider increasing taxes on UPFs to discourage consumption and fund public health initiatives.
- Public Awareness: Launch educational campaigns on the health risks of UPFs, particularly for children.
Daycare Cancer Centers: Significance and Challenges
About Daycare Cancer Centers
- These centers will provide chemotherapy and minor treatments in district hospitals.
- Patients can receive care without requiring overnight hospital stays.
- 200 such centers are planned across India by 2025-26.
Objective
- Enhance district-level cancer treatment.
- Reduce dependence on major metropolitan hospitals.
- Make treatment affordable and accessible, especially for rural populations.
Benefits
- Offers chemotherapy, medication, biopsies, and complication management.
- Reduces treatment costs and travel burdens.
- Improves access to cancer care in underserved regions.
Challenges
- Limited Services: Lack of advanced treatments like radiotherapy, which requires high-cost equipment.
- Infrastructure Gaps: Many district hospitals lack essential biopsy and oncology services.
- Trust Issues: Patients may prefer larger hospitals like AIIMS over district-level centers.
- Shortage of Specialists: Difficulty in attracting trained oncologists to smaller districts.
Conclusion
The Union Budget 2025-26 introduces several health sector reforms to improve accessibility, affordability, and infrastructure. Initiatives such as taxation on UPFs, expansion of cancer care, and workforce training will play a crucial role in addressing India’s healthcare challenges. However, effective implementation, investment in infrastructure, and building public trust remain key hurdles to overcome for these policies to be successful.