Union Budget for the Healthcare of the Underprivileged

The Union Budget 2025 was presented on 1 February 2025 at 11:00 AM. Continuing the tradition, Finance Minister Nirmala Sitharaman delivered the budget in Parliament. This marks the eighth consecutive budget presented by her.

Updated On - 05 Sep 2025

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced major improvements to the Ayushman Bharat scheme. The government aims to expand healthcare coverage and provide better medical support for underprivileged groups. To achieve this, the government has increased the budget allocation for Ayushman Bharat by 24%, bringing the total to Rs.9,406 crore for the upcoming financial year.

One of the most important changes is the inclusion of gig workers in the Ayushman Bharat scheme. This means that nearly 1 crore gig workers, like food delivery personnel, cab drivers, and freelancers, will now get health insurance coverage under this scheme. This step recognizes the growing gig economy in India and ensures that these workers, who often lack formal job benefits, get access to essential healthcare services.

With these updates, the government aims to make healthcare more affordable and accessible to different sections of society, ensuring financial protection for those in need.

Union Budget Highlights 2024-25 for the Healthcare of the Underprivileged

The highlights for Union Budget 2024-25 for the Healthcare of the Underprivileged are listed below: 

  1. Finance Minister Nirmala Sitharaman unveiled key healthcare initiatives in the Union Budget 2024, including customs duty exemptions on three cancer treatment drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
  2. The health sector's total outlay amounted to Rs.89,287 crore, which is 1.85% of the budget expenditure, a slight increase from the revised estimate of Rs.79,221 crore in the previous year.
  3. Specifically, the Health Ministry's allocation for 2024-2025 rose to Rs.90,958 crore from Rs.80,517 crore in the 2023-24 revised estimates.
  4. Additionally, the budget for the AYUSH Ministry increased from Rs.3,000 crore to Rs.3,712.49 crore.

Interim Union Budget 2024 Highlights for Healthcare of the Underprivileged

  1. On 1 February, Thursday, Finance Minister Nirmala Sitharaman extended the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to include all ASHA and Anganwadi workers.
  2. No budget allocation was specified for this extension. In the previous budget, FM Sitharaman had allocated Rs.7,200 crore for FY24.
  3. Also, Rs.88,956 crore was earmarked for the Health and Family Welfare Ministry in FY24.
  4. The AB-PMJAY aims to facilitate data interoperability within the ecosystem to establish electronic health records for all citizens, as per the government.

Union Budget 2021-22 Allocation for Healthcare Sector

According to the details that were presented by the Finance Minister Nirmala Sitharaman during the Union Budget 2021 announcement on 1 February 2021, a new scheme will be introduced for the healthcare sector. The scheme will be sponsored by the Central Government and will be called the PM Atmanirbhar Swasth Bharat Yojana. Under the scheme, the total outlay that will be provided over the next 6 years will be Rs.64,180 crore.

According to the Finance Minister, the main aim of the scheme will be to develop institutions that can detect new diseases, provide a cure, and improve the healthcare systems. The Finance Minister further added that the interventions under the new scheme will offer support to around 11,000 urban and 17,000 rural wellness centres.

The scheme will not be a part of the national health mission and will be an addition. Apart from the introduction of the new scheme, Rs.35,000 crore will be provided for COVID-19 vaccines. The Finance Minister that two new vaccines that are made in India will be launched soon.

Union Budget 2019-20 - Healthcare of the Underprivileged

  1. The allocation to the health sector was increased by 15.4% to Rs. 62,659.12 crore. 
  2. The allocation for the National Health Mission (NHM) was increased by 8% to Rs.32,295 crore. 
  3. The allotment for Health and Wellness Centers under NHM was increased by 33%. 
  4. The National AIDS and STD Control Programme saw its allocation rise by 30% to Rs.2,500 crore. 
  5. The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) saw its allocation rise up to Rs.4,000 crore. 

Comprehensive Healthcare Plan for Every Indian Citizen in Need

Applying a more holistic approach to the concept of healthcare, the Indian government has promised to establish approximately 1.5 lakh health care centers in order to "bring healthcare closer to home". These centers are believed to offer comprehensive medical support to pregnant and lactating mothers, childcare services, to people suffering from non-communicable diseases, coupled with a free diagnosis for each section and medical drugs. An amount of Rs.1200 crore has been set aside for this purpose.

Over and above that, a sum of Rs.600 crore is supposed to be allocated to offer proper medical care and nutritional support to people suffering with Tuberculosis.

The government is aiming to provide a more holistic medical care to the people of the nation as people cannot comprehend their demographic dividend until they are completely healthy and free of diseases and terminal illnesses.

Healthcare: Foundation for a Blooming Nation

The wake of the Union Budget of 2018 has left the people expecting some major changes in the healthcare sector. There is a tremendous amount of pressure on the Modi government to bolster healthcare delivery with a holistic approach. Following are a few of the things that need to be incorporated for effective healthcare delivery, specifically for the underprivileged.

  1. Accurate proposals must be introduced by the Budget, in order to properly identify the many pitfalls of India surrounding the healthcare condition.
  2. Precise acknowledgment of scanty state spending. The Budget must properly address the fact that the poor are suffering mainly because they are being treated by the private sector, in turn increasing their total expenses incurred.
  3. A country with poor health is less likely to efficiently meet its development goals. Hence, the Union Budget 2018 must analyse the current situation from a broader perspective.
  4. The Union Budget is expected to introduce a healthcare culture wherein there is an improved access and an easy affordability of medical services. This can be achieved through a combination of public hospitals and a strategic purchase of the private health sector's services.
  5. The Indian Government must prioritise its people's health by investing more in public hospitals, so that these establishments are better equipped to deal with medical exigencies.
  6. A fair share of investment must be allocated to the private health sector as well.
  7. The Budget must focus on primary healthcare to reduce the anxiety levied on secondary and tertiary health care.
  8. A total overhaul of primary health care is expected from this year's Budget. This includes strengthening of the hospital infrastructures, financing, capacity and human resources. A fundamental change in the basic operations of the healthcare sector is what is expected.
  9. To initiate a greater synergy, the Budget must explore the functioning of other sectors as well. These sectors include cleanliness drives, stringent measures against gender-based or racial violence, reduce the amount of road and train accidents.
  10. The Budget must look into the regulation of services provided by the insurance companies. Instead of hospitals making fruitless investments, they can simply use the money to treat their patients better.
  11. National Rural Health Mission (NRHM) should be on top of the Union Budget's agenda list. The Indian government must spend more time training people through it, improving the infrastructure and more.

There has been a gross misutilisation of funds by the healthcare sector in the past, that being the reason, the Finance Ministry is sceptical to allocate more funds towards the sector. Although, even in places where funds are properly channelled the quality of care provided remains substandard and defective.

Evidently, more funds allocated to the healthcare sector needs to be paired with advanced infrastructure and structural reforms to make sure there is a great deal of accountability and transparency.

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