Union Budget 2026: A crucial budget for healthcare in 2026-27? Let’s know in detail from the experts
- Health Sector Expectations from Budget 2026-27
- Demand from experts to increase the cost
- Expected to reduce GST on medical devices
Union Budget 2026: The Union Budget for the financial year 2026-27 will be presented on February 1, 2026. Many provisions will be made in this budget. Therefore, the attention of all sectors has remained close to the budget. Among them, the important sector is the healthcare and pharmaceutical sector in the country, which is full of expectations. With the budget presentation just days away, health experts are urging the government to increase public spending, reform the GST framework and strengthen digital health and research.
According to experts, government expenditure should be increased to 3 to 5 percent of GDP to improve the quality and availability of healthcare services in the country. Currently, this expenditure is limited, while the burden of non-communicable diseases (NCDs) continues to rise. An estimated 65 percent of deaths in India are caused by NCDs, putting increasing pressure on healthcare. So if some provisions are made then the decision will be beneficial. India is currently at a stage where proper policy implementation is most important. He urged the government to increase public health expenditure to at least 2.5% to build a strong and sustainable health ecosystem for the future.
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Reducing the GST on medical devices and diagnostic kits to 5% by 2025 was a big step, but now the reverse charge structure needs to be reformed. This will provide relief to domestic producers and reduce treatment costs. Such belief is being expressed. According to experts, almost 80% of India’s healthcare sector is dependent on imported medical equipment. The ‘Buy India’ initiative should be strengthened in the budget. To achieve this, schemes promoting research and development, such as the PRIP scheme, need to be made more effective. This will enable production of high-quality medical devices in the country.
Budget 2026 calls for strengthening primary and secondary healthcare infrastructure in Tier-II, Tier-III and rural areas. Experts say incentives like Priority Sector Lending (PSL) and Gap Viability Funding (VGF) should be given to set up diagnostic centers and eye hospitals in these areas, so that affordable and quality healthcare is available to all.
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The budget also has high expectations regarding digital health, artificial intelligence (AI) and IoT-based monitoring. AI-based diagnostics and digital platforms can help detect diseases early, making treatment more effective and affordable. This will enable the healthcare system to move from a reactive to a preventive model, the expert said. The upcoming budget holds significance for the healthcare industry. Integration of digital health infrastructure, pharmacy, diagnostics and home care services can provide better healthcare to the end person. Additionally, encouraging health technology innovation will improve both the quality of care and the patient experience. This allows India to rapidly move towards a robust, accessible and future-ready healthcare system.
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