NATHEALTH Urges 2.5% GDP Healthcare Spend in Pre-Budget Pitch for 2026
NATHEALTH Seeks 2.5% GDP Healthcare Spend in Budget 2026

NATHEALTH Advocates for Enhanced Healthcare Investment Ahead of Union Budget 2026

As the Union Budget 2026 approaches with its presentation scheduled for February 1, the prominent healthcare industry association NATHEALTH has issued a compelling appeal to the government. The organization is urging a significant increase in public healthcare expenditure to surpass 2.5 per cent of the Gross Domestic Product (GDP). This call to action is accompanied by a plea for immediate measures to tackle the escalating burden of non-communicable diseases (NCDs) across the nation.

Comprehensive Pre-Budget Recommendations for a Robust Health System

In its detailed pre-Budget recommendations, NATHEALTH has outlined a strategic roadmap designed to fortify healthcare delivery mechanisms, encourage innovation, and broaden insurance and preventive coverage. The body emphasizes the necessity of a well-balanced combination of fiscal support, structural reforms, and public-private partnerships. This integrated approach is deemed essential for constructing a health system that is not only resilient but also prepared for future challenges.

Focus on Infrastructure Development and Preventive Health Initiatives

NATHEALTH has strongly advocated for the declaration of the healthcare sector as core infrastructure, a move that would prioritize its development. To support this, the association has proposed the establishment of a substantial Rs 50,000 crore healthcare infrastructure fund. This initiative addresses the critical issue of limited access to long-term, low-cost capital for hospitals and diagnostic networks, as highlighted in a report by the news agency PTI. The proposal underscores that healthcare projects typically involve long gestation periods and require flexible mid-term financing solutions.

Drawing attention to the alarming surge in chronic illnesses, NATHEALTH pointed out that non-communicable diseases are now responsible for nearly 65 per cent of all deaths in India. To enhance early detection and combat this trend, the industry body has recommended introducing tax deductions of up to Rs 10,000 for individuals undertaking preventive health check-ups. This measure aims to address the currently low uptake of screening services. Furthermore, NATHEALTH has reiterated its call for the government to elevate healthcare public spending to over 2.5 per cent of GDP, a notable increase from the 1.9 per cent recorded in the 2023-24 fiscal year, according to official data.

Promoting Innovation, Laboratory Networks, and Long-Term Vision

Among its other strategic proposals, NATHEALTH has suggested the creation of a national network of accredited reference laboratories, backed by an outlay of Rs 1,000 crore. Additionally, the association has recommended setting up an innovation fund ranging between Rs 5,000 to 7,000 crore to foster deep-tech advancements and provider collaboration. These recommendations are aimed at addressing the fragmented nature of the current innovation ecosystem within the healthcare sector.

Leadership Perspectives on Healthcare as a National Priority

Summarizing the comprehensive set of recommendations, NATHEALTH President Ameera Shah articulated that healthcare must be recognized as a strategic pillar of nation-building. This recognition is crucial for achieving the ambitious Viksit Bharat 2047 vision, as conveyed in the PTI report. Echoing this sentiment, Senior Vice President Sangita Reddy emphasized that the Budget for 2026-27 should serve as a launchpad for bold, long-horizon investments. Such investments are vital for developing a resilient and future-ready healthcare system that can effectively meet the evolving needs of the population.