In India, states are responsible for public health system, which includes public hospitals and clinics.  The Ministry of Health and Family Welfare formulates the broader policy on public health through the National Health Policy, 2017.[1]   The Ministry has two departments: (i) Health and Family Welfare and (ii) Health Research.  The Department of Health and Family Welfare funds the National Health Mission.  The Department also regulates medical education, and funds certain medical colleges, such as AIIMS.  It also implements initiatives to improve human resources in health.  The Department of Health Research funds initiatives in medical research.

The National Health Policy, 2017 aims to achieve universal health coverage through preventive and promotive health care and access to good quality and affordable health care services.¹  To achieve these goals, the government provides healthcare at three levels: (i) primary (provided at sub centres, primary health centres, and community health centres at the village and block levels), (ii) secondary (provided at district hospitals), and (iii) tertiary (provided at specialised hospitals like AIIMS).[2]  In addition, the government implements the Ayushman Bharat – Pradhan Mantri Jan Aarogya Yojana (AB – PMJAY) which provides hospitalisation coverage of five lakh rupees to bottom 40% of the population in private empanelled hospitals.[3] 

Under the National Health Mission (NHM) states are provided with financial assistance to strengthen primary and secondary healthcare.[4]   This includes strengthening the infrastructure as well as improving maternal, neonatal, and child health, and reducing instances of communicable and non-communicable diseases.⁴  Targets related to improving the nutritional status of women and children are also addressed by the Ministry of Women and Child Development through the Mission Saksham Anganwadi and Poshan 2.0.[5] 

According to the National Health Accounts, government health spending has increased from 20% of total health expenditure in the country to 48% in 2021-22.[6]  Total health expenditure includes spending on medicines, insurance, hospitalisation, consultation and health infrastructure.  In 2021-22, 58% of government health expenditure was borne by states.⁶  Health indicators like maternal mortality, and infant mortality have improved, while incidence of anaemia has worsened.  The proportion of deaths caused due to communicable diseases has reduced, but correspondingly non-communicable diseases have been increasing.

This note examines the allocation to the Ministry in 2025-26 and the expenditure trends over the years.  It also highlights issues in the health sector, and discusses progress on some of the outcomes.

Overview of finances

In 2025-26, the Ministry has been allocated Rs 99,859 crore.[7]  This is a 11% rise over the revised estimates of 2024-25.  In 2025-26, the Department of Health and Family Welfare has been allocated 96% of the Ministry’s allocation.  The Department’s allocation is 11% higher than its estimated expenditure in 2024-25.  The Department of Health Research has been allocated Rs 3,901 crore, which is a 15% rise on its estimated expenditure in 2024-25.

 Table 1: Expenditure of the Ministry of Health and Family Welfare (in Rs crore) 

	2023-24 Actual	2024-25 Revised	2025-26 Budget	% Change 24-25 RE to 25-26 BE
Health and Family Welfare	80,292	86,582	95,958	11%
Health Research	2,857	3,392	3,901	15%
Total	83,149	89,974	99,859	11%

Note: BE is Budgeted Estimates and RE is Revised Estimates.
Sources: Demand No. 46 and 47, Expenditure Budget 2025-26; PRS.

Key expenditure heads

National Health Mission:  Allocation towards the NHM constitutes 37% of the Ministry’s budget in 2025-26.  Allocation in 2025-26 is Rs 37,227 crore, 3% higher than the revised estimates of 2024-25. 

Medical Institutions:  Transfers to certain centrally run medical institutions, such as AIIMS, Delhi and establishment expenditure for new AIIMS constitute 20% of the Ministry’s allocation in 2025-26.  This is 6% higher than the revised estimates of 2024-25.

AB-PMJAY:  In 2025-26, Rs 9,406 crore has been allocated towards the scheme, which provides a health insurance coverage of five lakh rupees to 12 crore families.  This is 24% higher than revised estimates of 2024-25.

 Table 2:  Main Heads of the Ministry's expenditure (in Rs crore) 

Heads	2023-24	2024-25 (RE)	2025-26 (BE)	% Change from RE to BE	Share in Ministry’s Budget
National Health Mission	33,043	36,000	37,227	3.4%	37%
Autonomous Bodies	17,216	18,979	20,046	5.6%	20%
Pradhan Mantri Jan Aarogya Yojana	6,670	7,606	9,406	24%	9%
PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)	2,230	3,567	5,109	43.2%	5%
AIDS and STD Control	2,450	3,000	3,443	14.8%	3%
Indian Council of Medical Research	2,343	2,870	3,126	8.9%	3%
Central Government Health Scheme	1,827	2,280	2,370	4%	2%
Pradhan Mantri Swasthya Suraksha Yojana	1,390	1,736	2,200	26.7%	2%
Human Resources for Health and medical education	1,322	579	1,675	189.2%	2%
Others	8,080	5,858	7,618	30.1%	8%
Total	83,149	89,974	99,859	11%	100%

Note:  Expenditure on Autonomous Bodies includes transfers to institutions such as AIIMS, Delhi and NIMHANS, Bangalore and expenditure on establishing new AIIMS.  Others includes transfers to centrally run hospitals and family welfare schemes.
Sources:  Demand No. 46 and 47, Expenditure Budget 2025-26; PRS

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