New Delhi, Feb 1: The Union Budget 2026-27 on Sunday announced a significant expansion in public spending on healthcare, medical research, medical tourism, skilling and heritage-led tourism, underlining the Centreís focus on building resilient health infrastructure while leveraging tourism as a driver of jobs and economic growth.

Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman allocated Rs 1,06,530.42 crore to the Ministry of Health and Family Welfare, marking nearly a 10 percent increase over the Revised Estimates of 2025-26.

She said the health budget has recorded a cumulative growth of over 176 percent in the last 12 years, reflecting the governmentís emphasis on strengthening healthcare infrastructure, expanding access and promoting medical research.

HEALTH INFRASTRUCTURE AND FLAGSHIP SCHEMES

One of the biggest boosts was announced for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), whose allocation has been increased by 67.66 per cent to Rs 4770 crore in Budget Estimates 2026-27.

The enhanced outlay will be used to expand critical care blocks, public health laboratories, and district and sub-district hospitals across the country.

Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), the allocation has been raised to Rs 11,307 crore, an increase of Rs 407 crore or 3.73 percent over the revised estimates of the previous year.

The funding will support the setting up of new AIIMS, strengthening of existing institutions and upgradation of government medical colleges.

The National AIDS and STD Control Programme has been allocated Rs 3477 crore, registering a 30.64 percent increase. This includes a major boost for blood transfusion services, aimed at strengthening national public health systems.

Boost to research and pharma innovation

Medical research received a major push, with the allocation for the Department of Health Research increased to over Rs 4821 crore, a rise of about 24 percent.

The Indian Council of Medical Research has been allocated Rs 4000 crore, nearly 27 percent higher than last year.

The Budget also announced the launch of ëBio Pharma Shaktií, a Rs 10,000 crore national initiative over five years to promote biologics and biosimilars, strengthen pharmaceutical research and reduce import dependence.

The initiative includes plans to expand NIPER institutions and create a national network of accredited clinical trial sites.

WORKFORCE, REGULATION, PATIENT RELIEF

To meet the growing demand for skilled healthcare professionals, the Budget proposes the creation of allied health institutions and regional medical hubs, along with a phased Rs 980 crore plan over 3 years for allied and healthcare education.

The government also proposed strengthening the drug regulatory framework by enhancing the scientific capacity of the Central Drugs Standard Control Organisation (CDSCO).

For patient relief, customs duty on several cancer and rare disease drugs has been reduced to lower treatment costs and cut out-of-pocket expenditure.

Trauma and emergency care centres are proposed in every district hospital to ensure affordable 24◊7 emergency services.

The Finance Minister said these measures reaffirm the governmentís commitment to building a resilient, inclusive, and future-ready healthcare system aligned with the vision of Viksit Bharat@2047.

MEDICAL TOURISM AND REGIONAL HUBS

Alongside healthcare spending, Sitharaman announced a new scheme to support states in setting up five Regional Medical Hubs in partnership with the private sector to promote India as a global medical tourism destination.

ìThese hubs will be integrated healthcare complexes with medical, education and research facilities,î she said.

They will include AYUSH centres, medical value tourism facilitation centres, and infrastructure for diagnostics, post-treatment care and rehabilitation, and are expected to generate jobs for doctors and allied health professionals.

TOURISM, HOSPITALITY, SKILLING

Highlighting tourism as a major source of jobs and foreign exchange, the Finance Minister announced the setting up of a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology.

The institute will act as a bridge between academia, industry and government.

She also proposed a pilot scheme to upskill 10,000 tourist guides at 20 iconic tourist sites through a standardised 12-week hybrid training programme, in collaboration with an Indian Institute of Management.

A National Destination Digital Knowledge Grid will also be created to digitally document cultural, spiritual and heritage sites across India, generating new job opportunities for local researchers, historians, content creators and technology partners.

ECO-TOURISM AND WILDLIFE INITIATIVES

Noting Indiaís potential for world-class trekking and hiking experiences, Sitharaman announced the development of ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, the Araku Valley in the Eastern Ghats and Podhigai Malai in the Western Ghats.

Other proposals include turtle trails at key nesting sites in coastal Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake in Andhra Pradesh and Tamil Nadu.

She also referred to the International Big Cat Alliance, launched in 2024, and announced that India will host the first Global Big Cat Summit this year, with participation from heads of government and ministers from 95 big cat range countries.

HERITAGE TOURISM AND REGIONAL FOCUS

Under heritage tourism, the Budget proposes the development of 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur and Leh Palace, as experiential cultural destinations. Excavated landscapes will be opened to the public through curated walkways, with immersive storytelling and modern technologies used in conservation labs, interpretation centres and guide training.

Focusing on the Purvodaya states, the Finance Minister announced plans for an integrated East Coast Industrial Corridor with a key node at Durgapur, development of five tourism destinations in the five Purvodaya states, and the introduction of 4,000 e-buses.

For the North-Eastern region, a new scheme was announced for the development of Buddhist circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura, focusing on preservation of temples and monasteries, interpretation centres, improved connectivity and better pilgrim amenities.

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New Delhi, Feb 01: In the Union Budget post Operation Sindoor, Defence Services have received an unprecedented allocation amounting to Rs 7.85 lakh crore for the Financial Year (FY) 2026-27. This allocation stands at 2% of the estimated GDP for the next Financial Year and shows a significant increase of 15.19% over the Budgetary Estimates (BE) of FY 2025-26. Total Defence budget is 14.67% of the Central Government expenditure and is the highest among the Ministries.

In addition to the modernisation of the Armed Forces and financing their regular requirement, the significantly enhanced allocation will also cater for the financial requirements that have arisen due to the emergency procurement of arms and ammunition made subsequent to Operation Sindoor under both the categories viz. Capital and Revenue. A large share of the defence budget to the tune of Rs 2.19 lakh crore has been allotted for capital expenditure vis-à-vis Rs 1.80 lakh crore which was allotted as BE of FY 2025-26. Through this enhanced provision, the Government has reaffirmed its resolve to transform the Armed Forces and their capabilities to the world’s highest standards with a strategic shift towards the goal of Aatmanirbhar Bharat.

Out of the total allocation made to the Ministry of Defence (MoD), a share of 27.95% is for capital expenditure, 20.17% for revenue expenditure on sustenance and operational preparedness, 26.40% for revenue expenditure on pay and allowances, 21.84% for Defence Pensions and 3.64% for civil organisations.

Modernisation of Armed Forces – a strategic objective

For FY 2026-27, budgetary allocation under capital head to the Defence Forces stands at Rs 2,19,306.47 lakh crore, which is 21.84% more than the Budget Estimates of FY 2025-26. Out of this, Rs 1.85 lakh crore is earmarked for Capital Acquisition, which is approximately 24% higher than the Capital Acquisition budget for FY 2025-26. In the current geo-political scenario, quantum jump in the modernisation budget is a strategic imperative. During FY 2025-26, up to 3rd quarter i.e., till December 2025, MoD has concluded contracts worth Rs 2.10 lakh crore and has, so far, given Acceptance of Necessity approval for more than Rs 3.50 lakh crore. The upcoming projects under capital acquisition will equip the Armed Forces with next generation fighter Aircraft, smart and lethal weapons, ships/submarines, Unmanned Aerial Vehicles, Drones, Specialist Vehicles, etc.

Thrust on Aatmanirbharta

Interruption in global supply chains and prioritization of domestic requirements over foreign sellers has re-emphasised the need for import substitution and going for indigenisation not only for sustenance but for future modernisation. In line with this, MoD’s policy to earmark funds to boost domestic industries through budgetary policies has been further strengthened by earmarking Rs 1.39 lakh crore i.e., 75% of the Capital Acquisition budget for procurement through domestic industries during the FY 2026-27. Through such earmarking of funds, domestic players have been reassured about their investment and their increasingly greater role in capability development of the Armed Forces. Enhanced allocation for Capital Acquisition, especially for domestic industries, will have long term positive impact on the national economy and will lead to development of many ancillary industries, creating job opportunities in the country.

Defence budget has made a provision of Rs 3,65,478.98 crore for spending under revenue heads. This allocation is 17.24% higher than the allocation for BE 2025-26. Out of this, Rs 1,58,296.98 crore has been allocated for operation and sustenance related expenditure and the remaining for salary and allowances. The budgetary provision made in this regard for the upcoming FY will facilitate procurement of operationally important stores, spare parts etc. and will ensure maintenance of vital platforms in addition to catering for their day-to-day requirements.

Major Thrust on Border Area Development

The Government has reiterated its commitment to providing better infrastructure in border areas through higher allocation to the Border Roads Organisation (BRO). Accordingly, budgetary allocation to BRO under Capital for BE 2026-27 has been enhanced to Rs 7,394 crore from Rs 7,146.50 crore for FY 2025-26. The said allocation will cater to many strategically significant projects such as tunnels, bridges, airfields, etc. and will promote regional development and tourism, along with providing last mile connectivity in the border areas.

Healthcare to Veterans

The Government is committed to providing best healthcare facilities to the veterans and their dependents through enhanced allocation to the Ex-Servicemen Contributory Health Scheme (ECHS). In the annual budget for FY 2026-27, an amount of Rs 12,100 crore has been allotted to ECHS which is 45.49% higher than the current year allocation at BE stage. The said allocation will fund the Medical Treatment Related Expenditure (MTRE) of veterans. The allocation to ECHS has been increased by more than 300% in the last five years vis-a-vis the allocation made at BE stage for FY 2021-22.

Fostering R&D in Defence

The budgetary allocation to Defence Research and Development Organisation (DRDO) has been increased to Rs 29,100.25 crore in FY 2026-27 from Rs 26,816.82 crore in FY 2025-26. Out of this allocation, a major share of Rs. 17,250.25 crore is allocated for capital expenditure.

Increase in Defence Pension Budget

Total Budgetary allocation on account of Defence pensions stands at Rs 1,71,338.22 crore, which is 6.56% higher than the allocation made during 2025-26 at BE stage. It will be spent on the disbursement of monthly pension to more than 34 lakh pensioners through SPARSH and other pension disbursing authorities.

Through a post on X, Raksha Mantri Rajnath Singh expressed gratitude to Prime Minister Narendra Modi and stated that under his visionary leadership, India’s journey towards a Viksit Bharat continues to gather momentum. He also congratulated Finance Minister Smt Nirmala Sitharaman for presenting a budget that seeks to “transform aspiration into achievement” and “potential into performance”. This “Yuva Shakti–driven Budget” will further strengthen PM Modi’s vision of an Aatmanirbhar and Viksit Bharat, he said.

Raksha Mantri added that inspired by the three ‘Kartavyas’, this budget aims to accelerate and sustain economic growth, fulfil the aspirations of the people and ensure meaningful participation for all. “Together, these priorities will drive inclusive development, promote the manufacturing sector, and create sustainable infrastructure. This budget is designed to ensure that the dividends of growth reach every section of society, with special focus on the poor, the underprivileged, and the disadvantaged,” he said.

Rajnath Singh thanked PM Modi for allocating Rs 7.85 lakh crore to the defence sector in the Union Budget 2026-27, stating that the budget strengthens the security-development-self-reliance balance, and it is in the best interest of the nation. He asserted that the budget, which comes after the historic success of Operation Sindoor, further strengthens the Government’s resolve to bolster the security system of the country and enhance military capabilities.

On the enhanced allocation under ECHS, Raksha Mantri termed it as a testimony to the Government’s resolve of ex-servicemen welfare.