Health Initiatives in Union Budget 2025-26 | 06 Feb 2025

Source: IE 

Why in News? 

The Union Budget 2025-26 has allocated around Rs 1 lakh crore for the Ministry of Health and Family Welfare. 

• The share of health in the FY26 budget increased marginally to 1.97% from 1.9% in FY25 but overall health allocation remained below 2% of the budget. 
• The Economic Survey (ES) 2024-25 and Union budget 2025-26 recommended and announced a number of measures to promote health in the country. 
• Among several announcements, the major one is the establishment of Daycare Cancer Centers. 

What are the Measures Recommended and Announced to Promote Health? 

• Taxing UPFs: The ES 2024-25 proposed a ‘health tax’ on ultra-processed foods (UPFs) to curb their consumption, citing links to obesity, diabetes, heart disease, and cancer. 
  • The high consumption of UPF is a key reason for India being the diabetic capital of the world, with over 101 million affected. 
• Cancer Care Expansion: The government plans cancer care centers in every district by FY 2026 and 200 new Daycare Cancer Centers by FY 2025-26 for localized chemotherapy and treatment. 
• Life-Saving Drug Exemptions: The budget exempts 36 life-saving drugs from Basic Customs Duty (BCD), reducing costs, while Patient Assistance Programmes (PAPs) run by pharma firms will continue providing free medicines duty-free. 
  • BCD is an indirect tax levied on all the goods and commodities imported to India. 
  • PAPs assist those without health insurance by covering full medication costs or offering discounts on medicines. 
• AB PM-JAY for Gig Workers: AB PM-JAY has been expanded to cover nearly 1 crore gig workers, who will be registered on the e-Shram portal with ID cards for healthcare access. 
• Health Infrastructure and Manpower: The budget allocated Rs 4,200 crore for Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) to enhance healthcare facilities and set up five skill centers to train 3,00,000 healthcare professionals annually to meet global healthcare demands. 
• Women and Child Healthcare: PM Matru Vandana Yojana will expand maternal health programs, with increased funding for child nutrition and vaccinations.  
  • More Anganwadi centers will be upgraded with digital tracking systems. 
• Pharmaceutical Research: The government allocated Rs 2,445 crore for the Production Linked Incentive (PLI) scheme to boost pharmaceutical manufacturing. 
• Mental Health and Telemedicine: The National Tele Mental Health Programme received funding to expand mental healthcare services across India. 
• Medical Tourism: The government plans to simplify visa procedures for medical tourists to boost India’s medical tourism market that is valued at USD 7.56–USD 10.4 billion in 2024. 
  • The "Heal in India" initiative was launched in 2023 to promote medical tourism. 

What ES 2024-25 Recommended to Reduce Consumption of UPFs? 

• Clear Regulations: It recommended stricter FSSAI regulations, including clear UPF definitions, and labeling standards. 
• Stronger Monitoring: Implement stricter monitoring of branded products to ensure compliance with health standards and prevent misleading claims. 
• Enhanced Consumer Protection: Strengthen laws to address aggressive marketing, particularly targeting children and adolescents. 
• Higher Taxation: Consider imposing higher taxes on heavily marketed UPFs to discourage consumption and fund public health initiatives. 
• Consumer Awareness: Launch educational campaigns, especially for children, about the health risks of UPFs, including obesity, diabetes, and other metabolic diseases. 

What is a Daycare Cancer Center? 

• About: A Daycare Cancer Center is a cancer clinic offering chemotherapy in a day facility for patients who need quick treatments and don't require overnight hospital stays. 
  • The government plans to establish 200 centers by 2025-26 across India’s 759 district hospitals. 
• Objective: It aims to enhance district-level cancer care, easing the burden on metropolitan hospitals, and is vital for rural populations facing high treatment costs and long travel distances. 
• Significance: The centers will offer chemotherapy, medications, biopsies, and complication management to improve cancer care accessibility. 
• Concerns: 
  • Lack of Service Clarity: Concerns exist about the absence of advanced treatments like radiotherapy, which requires high investment in equipment. 
  • Infrastructure Issues: Many district hospitals lack biopsy services, and some medical colleges don’t offer cancer treatment, raising doubts about their ability to manage these centers. 
  • Trust Issues: Patients may be reluctant to trust district-level centers for cancer treatment, preferring established hospitals like AIIMS. 
  • Workforce Shortages: Concerns exist about attracting trained oncologists to smaller districts, which may require competitive salaries and incentives. 
• Public Health Impact: Cancer cases are rising in India, with one in nine people expected to develop it.  
  • The centers will ease the growing patient load and improve treatment accessibility, particularly in rural areas. 

Conclusion 

The Union Budget 2025-26 introduces key health measures, including cancer care expansion and taxation on ultra-processed foods (UPFs), to address rising health concerns. While the initiatives aim to improve accessibility and affordability, challenges like infrastructure, workforce, and public trust remain significant hurdles to overcome.