4. Health Sector Allocations in Union Budget 2026

Background The Union Budget 2026 increased allocations for the health sector, reflecting post-pandemic policy learning. Key Highlights • Health allocation crossed ₹1.05 lakh crore (~10% increase). • Still below 0.3% of GDP, far from National Health Policy target (2.5%). • Biopharma SHAKTI Scheme launched with ₹10,000 crore. • Expansion of: o NIPERs o Mental health institutions • Customs duty exemptions for cancer and rare disease drugs. Value Addition • Focus on ageing population, mental health, and allied health workforce. • Encourages domestic biologics and biosimilars manufacturing. Key Definition • Biologics: Medical products derived from living organisms (vaccines, monoclonal antibodies). Constitutional & Legal Provisions • Article 21: Right to life → judicially expanded to include health. • Directive Principles: State responsibility for public health. Conclusion The budget shows policy intent, but fiscal commitment remains inadequate for universal health coverage. UPSC Relevance • GS-2: Social sector, health governance