More, and less, Pg8

Key Highlights:

• The health-care allocation in Budget 2026 is over ₹1.05 lakh crore, a 10% increase from the previous year.
• The 2026 health budget is approximately 1.9% of the total government expenditure and about 0.26% of GDP.
• The Biopharma SHAKTI scheme receives ₹10,000 crore to transform India into a biologics and biosimilars manufacturing hub.
• The government aims to train one lakh allied health professionals and 1.5 lakh care workers for elderly care over the next five years.
• Customs and import duties are exempted on 17 cancer medicines and treatments for rare diseases.

Detailed Insights:

• The National Health Policy of 2017 committed to increasing health-care allocation to 2.5% of GDP by 2025, a target not met in the 2026 budget.
• The Biopharma SHAKTI scheme will establish a pan-country clinical trial infrastructure with 1,000 accredited sites, boosting research and development.
• Three new National Institutes of Pharmaceutical Education and Research (NIPER) will be set up, and seven existing units will be modernized.
• A second NIMHANS campus will be established in north India, along with two upgraded national mental health institutes, to strengthen mental health infrastructure.
• Reduced tax collected at source on medical and educational remittances from 5% to 2% aims to make care more affordable.
• Concerns exist that the Centre's reduced share in health funding will lead to inconsistent improvements in the country's health-care sector.
• Decreased funding for the National Health Mission has been criticized despite consistent and effective utilization of funds.

Key Concepts Involved:

• Biologics: Medicines made from living organisms or their products.
• Biosimilars: Biological products that are similar to already approved biological medicines.
• National Health Mission: A government program to address healthcare needs in rural and underserved areas.
• Fiscal Devolution: Transfer of financial resources and responsibilities from the central government to state governments.