In the next year, 10,000 additional seats will be added towards the goal of adding 75,000 seats in the next 5 years
The Union Budget 2025-26 announced a hike in nutritional support for schemes to tackle malnutrition, health insurance cover for gig workers and additional seats in medical colleges and hospitals for undergraduate and postgraduate students. It also announced initiatives that will help cancer patients.
The allocation for the department of health and family welfare for the next financial year stood at Rs 123059.80 while that for the department of health research stood at Rs 3900.69 crore. Last year they were Rs 109551.36 for the department of health and Rs 3300 crore for the department of health research. “ Our Government has added almost 1.1 lakh UG and PG medical education seats in ten years, an increase of 130 per cent. In the next year, 10,000 additional seats will be added in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next 5 years. Our Government will facilitate setting up of Day Care Cancer Centres in all district hospitals in the next 3 years. 200 Centres will be established in 2025-26,” finance minister Nirmala Sitharaman said in her speech.
She also announced that the cost norms based on which nutritional support is provided for various schemes to tackle malnutrition, will also be revised. Gig workers numbering about 1 crore will now be covered under the Pradhan Mantri Jan Arogya Yojana (PMJAY), making them eligible for an annual family health cover of Rs 5 lakh. Broadband connectivity will be provided to all primary health centres in rural areas.
Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies are fully exempt from basic customs duty
Sitharaman also announced that 36 lifesaving drugs and medicines will be added to the list of medicines fully exempted from Basic Customs Duty (BCD), a move that will benefit patients of cancers and various rare diseases. “ Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies are fully exempt from BCD, provided the medicines are supplied free of cost to patients. I propose to add 37 more medicines along with 13 new patient assistance programmes,” she added.
The industry welcomed the Budget. “For mental health startups, the government’s move to expand medical education by increasing seats is a welcome push. Additionally, the introduction of credit guarantee cover and the new Fund of Funds is timely, especially as startup investments have declined, leaving many budding ventures in need of a lifeline. However, we recall the launch of the mental health helpline in the COVID-19 budget—and little action beyond that. There remains a critical need for expanded insurance coverage for mental health and related illnesses to address the root causes. Such a step would be both necessary and profoundly impactful,” said Rajat Goel, Co-Founder at Emoneeds.
Dr. Harsh Mahajan, Chair of the FICCI Health Services Committee and Founder & Chief Radiologist at Mahajan Imaging & Labs said: “We welcome the revision of MSME limits and the exemption from income tax for up to Rs 12 lakh, which will significantly benefit those working in the healthcare sector. The exemption of 36 life-saving drugs from basic customs duty, along with the concessional 5% duty on six additional medicines, will make critical treatments more affordable for patients suffering from cancer, rare diseases, and chronic conditions. Furthermore, the inclusion of 37 additional medicines and 13 new patient assistance programs will further ease the financial burden on patients.
