The Union Budget 2025-26 has allocated around Rs 1 lakh crore for the Ministry of Health and Family Welfare. The health sector’s share in the budget has seen a slight increase to 1.97% from 1.9% in FY25, though overall funding remains under 2% of the total budget.
The Economic Survey (ES) 2024-25 and the Union Budget 2025-26 have introduced several initiatives to improve healthcare in India. One of the key announcements is the establishment of Daycare Cancer Centers to make cancer treatment more accessible.
Note: The National Health Policy 2017 suggests increasing health expenditure from 1.15% of GDP (2017) to 2.5% by 2025.
Key Health Initiatives in the Budget
Taxing Ultra-Processed Foods (UPFs)
The Economic Survey 2024-25 has proposed a ‘health tax’ on ultra-processed foods (UPFs) due to their links to obesity, diabetes, heart disease, and cancer. India has over 101 million diabetic patients, making it the diabetes capital of the world. This tax aims to discourage UPF consumption and promote healthier eating habits.
Cancer Care Expansion
The government plans to establish cancer care centers in every district by FY 2026. Additionally, 200 Daycare Cancer Centers will be set up by FY 2025-26 to provide chemotherapy and localized treatment options.
Life-Saving Drug Exemptions
The budget has removed Basic Customs Duty (BCD) on 36 life-saving drugs, reducing costs for patients. Patient Assistance Programs (PAPs) run by pharmaceutical companies will continue to provide free medicines without duty charges.
- What is BCD? An indirect tax levied on imported goods.
- What are PAPs? Programs that help uninsured patients by covering full medication costs or offering discounts.
Health Coverage for Gig Workers
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has been expanded to include nearly 1 crore gig workers. These workers will be registered on the e-Shram portal and provided ID cards for healthcare access.
Strengthening Health Infrastructure
The budget has allocated Rs 4,200 crore to the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) to enhance medical facilities. Additionally, five new skill centers will be established to train 3,00,000 healthcare professionals annually to meet growing healthcare demands.
Women and Child Healthcare
The PM Matru Vandana Yojana will see increased funding for maternal health, child nutrition, and vaccination programs. More Anganwadi centers will be upgraded with digital tracking systems for better child development monitoring.
Boosting Pharmaceutical Research
A budget of Rs 2,445 crore has been allocated to the Production Linked Incentive (PLI) scheme to promote pharmaceutical manufacturing and innovation in India.
Mental Health and Telemedicine
The National Tele Mental Health Programme has received additional funding to expand mental healthcare services nationwide, making mental health support more accessible.
Promoting Medical Tourism
The government plans to simplify visa procedures for international patients seeking treatment in India. The medical tourism market, valued at USD 7.56–USD 10.4 billion in 2024, is expected to grow further under the “Heal in India” initiative launched in 2023.
The Need for Regulating Ultra-Processed Foods
- India’s UPF spending skyrocketed from USD 900 million (2006) to USD 37.9 billion (2019).
- UPFs make up 9.6% of rural and 10.64% of urban household food budgets.
- Countries like Brazil, Canada, Chile, and the UK regulate UPFs through nutrient profile models that classify food based on nutritional quality.
- Denmark introduced a tax on saturated fats in 2011, and Mexico taxes sugary drinks and junk food.
How to Reduce UPF Consumption?
- Stronger Regulations: The Food Safety and Standards Authority of India (FSSAI) should define UPFs and introduce stricter labeling laws.
- Better Monitoring: Companies should be monitored to prevent misleading health claims.
- Consumer Protection: Laws should be strengthened against aggressive junk food marketing targeting children.
- Higher Taxation: Increase taxes on heavily marketed UPFs to discourage consumption and fund health initiatives.
- Awareness Campaigns: Public education programs should highlight the risks of UPFs, especially for children.
What is a Daycare Cancer Center?
About
A Daycare Cancer Center is a facility where patients can receive chemotherapy without staying overnight. The government plans to set up 200 such centers by 2025-26 across 759 district hospitals.
Objectives
- Provide cancer treatment at the district level to ease the burden on metro hospitals.
- Reduce treatment costs for rural patients.
- Improve accessibility for those who struggle with travel expenses and availability of services.
Challenges
- Lack of Advanced Treatment: Many district hospitals lack infrastructure for services like radiotherapy.
- Infrastructure Gaps: Some hospitals don’t have biopsy services or trained oncology staff.
- Trust Issues: Many patients prefer major hospitals like AIIMS over district centers.
- Shortage of Oncologists: Small districts struggle to attract specialists without offering competitive salaries.
- Public Health Impact: With 1 in 9 Indians likely to develop cancer, these centers are crucial for early treatment and reducing patient burden on large hospitals.
Conclusion
The Union Budget 2025-26 has introduced significant health initiatives, including cancer care expansion and taxation on ultra-processed foods (UPFs), to tackle rising health issues. However, challenges like infrastructure gaps, workforce shortages, and public trust need to be addressed for these measures to be truly effective.
