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At least two-third of the Union Health Budget should be transferred to states, given that the states bear two-third of total burden of public health expenditure. (PTI Photo)
As the Union Budget 2026–27 approaches, Jan Swasthya Abhiyan (JSA) has claimed that the commitments made in the National Health Policy (NHP) 2017 are not being met. The NHP promised public health spending of 2.5% of GDP by 2025, but it remains low at 1.15%. In this context, JSA released a demand letter endorsed by 350 organisations and individuals outlining urgent budget priorities.
At a virtual media conference on Wednesday, Indranil, co-convener, JSA national secretariat flagged deep concern that post-Covid, Union government spending on health has continuously declined in real terms, making it impossible for the NHP 2017 goal to be realised by 2025.
“The policy promised 2.5% of GDP for health, but it is at just 1.15%—a stark gap. To fulfil the NHP commitment, the Union allocations for health in budget 2026–27 should be doubled. It is the same government which made the promise, and now they should honour it,” Indranil said.
The JSA demands include that the Union government allocations towards health in the 2026-27 budget should be doubled from the current 0.3% of GDP to meet in two years the goal of 1% of the GDP (roughly around 5% of Union Budget) set for 2025 by the National Health Policy–2017.
“Overall public spending on health should be further increased to 3.5% of GDP by 2030,” JSA experts said. The demand also includes allocation to NHM should be doubled, to support strengthening and expansion of health services apart from the improvement of Health and Wellness Centres, ensuring justice to health staff including ASHAs and contractual workers.
At least two-third of the Union Health Budget should be transferred to states, given that the states bear two-third of total burden of public health expenditure, the letter stated, adding that collection of health cess amount should be used to complement resources devoted to health, rather than substituting the main budgetary allocations.
Ravi Duggal, sociologist, health researcher and activist also explained that the declining share of Union health resources transferred to states is extremely alarming. “Union transfers to states for health have fallen from 75.9% in 2014–15 to just 43% in 2024–25 (budget estimates), undermining basic services. This trend reflects hyper-centralisation of finances even though health services largely fall within the states’ domain. It is important to recognise that during and after Covid, states have sustained higher spending levels despite constraints. This commitment must be supported, not undermined,” he said.
Among other demands include phasing out PMJAY and giving primacy to strengthening and expanding publicly provided healthcare. Richa Chintan, co-convener, JSA national secretariat said the harshest cuts are hitting programmes that strengthen the public system—National Health Mission (NHM), Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), nutrition, and research—despite their value in hard times.
“NHM funds have declined in real terms by 5.5% on average. Even within limited allocations, the thrust continues towards private partnerships and insurance-based models such as PMJAY. This is happening despite extensive evidence that shows limits of insurance-led healthcare models in ensuring access and equity. We need to double NHM funds, shift away from privatisation, and revive Central pharma and vaccine PSUs,” Chintan said.