Finance Minister Nirmala Sitharaman announced a Rs 1.06 lakh crore health budget for 2026-27, a 9 percent increase from the current financial year. Yet persistent gaps in utilisation, staffing and quality suggest higher allocations alone cannot fix India's public health crisis.

Despite a decade of expanded budgets and infrastructure — 183,833 health centres upgraded, 157 new medical colleges approved — about 50 percent Indians avoid the public health sector citing poor quality, long waits, and staff shortages.

The largest component is the National Health Mission (NHM), which received Rs 39,390 crore in 2026-27, up 6.1 percent from the expected spending this year. 

Yet, fund utilisation under NHM remains persistently weak. In 2022-23, only 65 percent of allocated NHM funds were spent, declining further to 62 percent in 2024-25, as per a January 2026 analysis by the Foundation for Responsive Governance (ResGov), a New Delhi-based non-profit aiming to strengthen government and community capabilities. In Uttar Pradesh and Punjab, less than half of NHM funds were utilised.

“The government is continuing to fund the public sector. There has been a large expansion of health and wellness centres over the past few years,” says Nachiket Mor, visiting scientist at the Banayan Academy of Leadership in Mental Health.

By February 1, 2026, 183,833 primary health centres, sub-centres and urban health centres have been upgraded to Ayushman Bharat Health and Wellness Centres (now called Ayushman Aarogya Mandirs), each meant to serve populations of 3,000 to 5,000, as per the data from Ministry of Health and Family Welfare.

For health and wellness centres, only 40% of allocated funds were spent in 2024-25, another analysis by the nonprofit found.

Mor argues that this points to structural limits rather than funding gaps. “There is more investment, but increasing money is not the answer. The problem is how the health system is designed and run,” he explains.

“The issue is not how much you announce,” says Amulya Nidhi, National Convener of Jan Swasthya Abhiyan India. “It is whether the money reaches the health centre and the patient.”

“Governments are already spending enough money,” Mor adds. “The problem is whether the public system is........

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