Ahead of Budget 2026-27, study urges higher public health spending to curb inequality and rising costs

An academic study released ahead of the Union Budget 2026-27 has urged the government to raise public healthcare expenditure, warning that rising medical costs and uneven access are deepening inequality. The research argues that India’s ongoing economic and social changes are increasing health needs, while out-of-pocket costs remain a burden for many households.

The study’s core recommendation is a stronger, sustained boost to public funding so that essential services become more affordable and accessible, particularly for those who rely on public facilities or are pushed into debt due to private medical bills. Researchers also point to the need for capacity-building in public systems, including workforce, primary care reach and infrastructure.

Why the Budget 2026-27 matters for healthcare

The Union Budget is one of the biggest levers for health outcomes because it shapes how much money flows into hospitals, primary health centres, prevention programmes and disease surveillance. Advocates of higher spending often stress that health investment has multiplier effects—improving productivity, reducing long-term disease burdens and supporting social stability.

The study links healthcare inequity not only to geography and income but also to the broader pressures of changing lifestyles, urbanisation and demographic shifts. It suggests that as these factors evolve, the public system must expand in both scale and quality to prevent gaps from widening further.

Focus on affordability and resilience

Beyond immediate spending, the report calls for strengthening the foundations of healthcare delivery—so that citizens can access timely diagnosis and treatment without catastrophic expenditure. It positions higher public investment as a way to make healthcare systems more resilient, especially when new public-health shocks or disease surges place sudden strain on services.