The government has shown a strong commitment and invested in strengthening India’s healthcare system over the last few years. As we approach towards the union budget for FY 2026-27, there is an opportunity to further accelerate the progress by increasing government’s expenditure on health to 2.5-3% of the GDP. An increase allocation will help address infrastructure gaps, availability of skilled workplace and delivery of quality healthcare. 

The budget should increase investment in strengthening the network of district hospitals and expanding secondary and tertiary healthcare facilities. Additionally, increasing investment in preventive and early diagnostic facilities in Tier 2, 3 and rural regions of the country will be critical to reducing healthcare disparities. Given India’s increasing geriatric population, the government should place a greater emphasis on geriatric care including chronic disease management, appropriate infrastructure to address the evolving needs of senior citizens. 

In addition to higher public spending, the healthcare sector needs access to long term financing and simplified tax framework to enable scale and long-term sustainability. With access to long term and affordable credit can fuel necessary infrastructure expansion. Streamlining of the flagship Ayushman Bharat Scheme through broader procedure coverage, simpler hospital empanelment, and rationalised reimbursement timelines will unlock the scheme’s true potential. A holistic and effective strategy in the upcoming budget will help ensure the development of a robust, inclusive, and future-ready healthcare system.