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Published 11:52 IST, February 2nd 2025

India Increases Healthcare Budget to Rs 90,958 Crore, Focuses on Infrastructure and Maternal Health

The Department of Health and Family Welfare will receive the largest share, Rs 87,656 crore, reflecting a 12% increase.

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The Department of Health and Family Welfare will receive the largest share, Rs 87,656 crore, reflecting a 12% increase.
The Department of Health and Family Welfare will receive the largest share, Rs 87,656 crore, reflecting a 12% increase. | Image: X

Budget 2025: The government raised healthcare spending to Rs 90,958 crore for the 2024-25 fiscal year, marking a 2% increase from the previous year. The Union Budget emphasizes improving healthcare infrastructure, strengthening existing programs, and integrating maternal and child health services under the National Health Mission.

The Department of Health and Family Welfare will receive the largest share, Rs 87,656 crore, reflecting a 12% increase. 

The Department of Health Research also sees a notable boost, with funding rising by 13% to Rs 3,301 crore. This funding will support the Indian Council of Medical Research (ICMR) and other health initiatives, while biotechnology research funding sees a major increase, doubling to Rs 1,100 crore. However, funding for bio-security and pandemic research has been reduced by 35%.

The government's flagship health insurance program, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), will benefit from a 7% funding increase, bringing its allocation to Rs 7,300 crore. 

This funding extension aims to include ASHA and Anganwadi workers under the health insurance coverage. Additionally, the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission will receive a 63% funding boost, reaching Rs 3,756 crore.

Maternal and child health programs under the National Health Mission will see a 23% increase, with Rs 28,783 crore allocated. 

The overall budget for the National Health Mission rises by 14%, reaching Rs 36,000 crore. The National Tele Mental Health Programme, aimed at improving mental health services across the country, will get a 38% funding increase. 

Meanwhile, funding for the Ayushman Bharat Digital Mission remains steady at Rs 200 crore. Disease surveillance and outbreak management are also seeing significant support, with funding increasing by 93% to Rs 52 crore.

Despite the overall healthcare budget rise, funding for human resources and medical education has faced a 16% cut, dropping to Rs 1,274 crore. 

On a positive note, the capacity-building allocation for the Department of Health Research has increased by 69%, reaching Rs 147 crore.

The government has also introduced full customs duty exemptions for three cancer drugs and made adjustments to duties on materials used in orthopedic implants and X-ray equipment. Additionally, the pharmaceutical industry’s performance-linked incentive scheme will see its funding more than doubled from Rs 1,200 crore to Rs 2,143 crore. Provisions for housing, childcare, nutrition programs, and traditional medicine (AYUSH) have also been enhanced in this year's budget.

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Updated 11:52 IST, February 2nd 2025