Union Budget 2026–27 Boosts Health Sector: Medical Allocation Crosses ₹1.06 Lakh Crore, More MBBS & PG Seats Ahead
Union Budget 2026-27: Major Boost to Health Sector and Medical Education
The Union Budget 2026-27, presented on 1 February 2026, has once again placed strong emphasis on strengthening India’s healthcare system. With increased funding for hospitals, medical colleges, research, and workforce development, the budget carries important implications for MBBS, BDS, and postgraduate medical aspirants preparing for NEET counselling.
Over the last decade, healthcare spending has steadily increased, and Budget 2026-27 continues this trend by focusing on infrastructure expansion, medical seat growth, and long-term capacity building under the vision of a developed India by 2047.
Health Budget Growth Over the Years
In 2023-24, the Ministry of Health and Family Welfare received an allocation of around ₹89,155 crore, marking a strong recovery phase after the COVID-19 pandemic. This was followed by a marginal increase to about ₹90,900 crore in 2024-25, with a clear focus on infrastructure upgrades and public health schemes.
The 2025-26 budget saw a sharper rise to nearly ₹99,859 crore, reflecting the government’s intention to rapidly expand medical colleges and postgraduate training capacity. In Budget 2026-27, the total health allocation has crossed ₹1.06 lakh crore, representing close to a 10 percent increase over the previous year.
Since 2014, the overall health budget has more than doubled. However, health spending still remains around 2 percent of the total Union Budget, slightly below the long-term national target. Despite this, the steady rise has already produced visible results in medical education.
Exam & Counselling Alerts
Join our community to get instant notifications on NEET UG & PG registration, cut-offs, and merit lists.
Budget 2026-27 - Medical Education
In Budget 2026-27, the Department of Health and Family Welfare has received over ₹1,01,700 crore, while funding for health research has increased sharply to more than ₹4,800 crore. This increase directly supports medical colleges, teaching hospitals, and advanced research institutions.
The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) has received over ₹11,300 crore. This scheme funds new AIIMS, upgrades government medical colleges, and expands super-speciality departments. Many of the new MBBS and MD/MS seats announced in recent years are a direct result of PMSSY funding.
Allocation for human resources in health and medical education has also increased. This funding supports faculty recruitment, postgraduate training, and the government’s long-term plan to add approximately 75,000 medical seats over five years.
Explosion in MBBS and PG Medical Seats Since 2014
In 2014, India had around 387 medical colleges with approximately 51,000 MBBS seats. By 2023, the number of colleges crossed 700 and MBBS seats doubled to more than 1.07 lakh.
The expansion continued in 2024-25 with over 780 medical colleges and nearly 1.18 lakh MBBS seats. By 2025-26, India crossed 819 medical colleges with around 1.29 lakh MBBS seats. The government now aims to cross 1.37 lakh seats in the near future.
Postgraduate medical seats have also grown rapidly, increasing by more than 140 percent since 2014. This expansion is critical for addressing the shortage of specialists across government hospitals.
Budget 2026-27 also highlights allied health education and healthcare research. Dedicated funding has been announced to train large numbers of allied health professionals, including paramedics, technicians, and caregivers.
New initiatives in biomedical research and pharmaceutical education aim to strengthen institutions like AIIMS, PGIMER, and NIPERs. These developments open alternative career options for BDS graduates and students interested in research, public health, and healthcare innovation.
Impact on NEET Counselling and CutOff
The steady increase in government medical seats is expected to improve chances during NEET UG and NEET PG counselling, particularly under the All India Quota. While competition remains intense, the growing seat pool provides more opportunities compared to previous years.
States with strong medical infrastructure may benefit more from these expansions. However, candidates must carefully verify college recognition, hospital load, and faculty strength before finalising their choices.
Challenges That Still Remain
Despite the rising budget, challenges such as faculty shortages, uneven infrastructure quality, and high out-of-pocket healthcare expenses persist. Rapid expansion also places pressure on maintaining academic standards.
For students, this means more seats and opportunities, but also the need to make informed decisions during counselling to ensure long-term career growth.
Aspirants should closely monitor NMC notifications, new college approvals, and updated seat matrices before counselling. Understanding budget-driven expansions can help candidates identify newer colleges and new opportunities.
