Budget 2025: Health sector gets a boost, allocation raised by nearly 10% to Rs 99,858 crore – Key takeaways from FM's speech

Health Budget 2025: The Finance Minister, Nirmala Sitharaman, who presented her eighth consecutive budget speech on Saturday, allocated Rs 99,858.56 crore for developing, maintaining, and improving the country’s healthcare system, marking a 9.78 per cent increase from Rs 90,958.63 crore in FY24. Additionally, Rs 2,445 crore has been allocated for the PLI scheme for the pharmaceutical industry, and Rs 9,406 crore has been allocated to the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY).

Since FY14-15, the healthcare sector has seen a 191 per cent increase in budgetary allocation from Rs 34,386 crore. The Union Health Ministry emphasised this on X, stating that the budget demonstrates the government's commitment to citizens' well-being.

Also Read: Union Budget 2025: Healthcare sector gets Rs 98,311 crore; pharma stocks in focus

Here are key announcements made by Finance Minister Nirmala Sitharaman for health sector:

1. Medical tourism & ‘Heal in India’ initiative: In a bid to boost medical tourism, the ‘Heal in India’ initiative has been introduced. The government aims to promote medical tourism in collaboration with the private sector, simplify visa norms for international patients, and establish India as a global healthcare hub.

2. Exemption on life-saving drugs:  To enhance accessibility to essential medicines, the government has exempted 36 life-saving drugs used for cancer and rare diseases from basic customs duty. Additionally, 37 more medicines have been added to the exemption list, benefiting patients suffering from cancer and other severe chronic illnesses.

3. Medical education: Medical education expansion has been prioritised, with 10,000 new medical seats set to be introduced in colleges and hospitals next year. Over the next five years, 75,000 additional seats will be added. This initiative marks a 130 per cent increase in medical education seats over the last decade, bringing the total to 1.1 lakh undergraduate and postgraduate seats.

4. Cancer care facilities: The government has also planned to strengthen cancer care facilities by establishing 200 cancer daycare centers in government hospitals within the next three years, starting from 2025-26. This move aims to provide better access to treatment and reduce the burden on tertiary care hospitals.

5. Healthcare for gig workers: Healthcare benefits under the PM Jan Arogya Yojana (PMJAY) have been extended to gig workers. The government will issue identity cards and register gig workers on the e-Shram portal, ensuring healthcare coverage for nearly 1 crore gig workers.

6. Broadband connectivity for healthcare and education: In a move to improve digital connectivity in healthcare and education, the government has announced that all government secondary schools and primary healthcare centers will be connected to broadband services, enhancing access to online medical consultations and educational resources.

7. Saksham Anganwadi and Poshan 2.0: The Saksham Anganwadi and Poshan 2.0 programme has been introduced to provide nutritional support to over 8 crore children, 1 crore pregnant and lactating women, and 20 lakh adolescent girls. Special focus will be given to aspirational districts and the northeast region. Additionally, cost norms for nutritional support will be enhanced to ensure better dietary provisions.

In the Union Budget 2024-25, presented in July after the Lok Sabha elections, the Health Ministry was allocated Rs 90,958.63 crore. This marked a 12.9 per cent increase from the revised estimate of Rs80,517.62 crore for 2023-24.