Union Budget 2025-26: Prioritizing Cancer Care

Budgetary Allocation for Healthcare

The Ministry of Health and Family Welfare has been allocated Rs.99,858.56 crore, with Rs. 95,957.87 crore designated for the Department of Health and Family Welfare and Rs. 3,900.69 crore for the Department of Health Research. This is just 1.97% of the total government expenditure of ₹50,65,345 crore.

WHO recommends 5% of GDP for healthcare, while India’s public healthcare spending remains under 2%.
Countries like the US (~8% of GDP on public healthcare) and UK (~7-8%) allocate much higher percentages.

This suggests India still heavily relies on private healthcare, leading to high out-of-pocket expenses for citizens

To analyze whether the current healthcare budget in India is better or worse than previous ones, we need to consider key factors such as allocation, policy focus, infrastructure development, and accessibility improvements.

🔹 How It’s Better than Previous Healthcare Budgets:

The increased budget allocation for healthcare signifies a stronger government commitment to public health, as evident from the year-on-year rise in budgetary outlays. For instance, the health budget for 2023 was ₹89,155 crore, an increase from ₹86,200 crore in 2022.

A key focus area is digital health and AI, with initiatives like the Ayushman Bharat Digital Mission (ABDM) and AI-driven diagnostic tools reflecting a shift toward technology-enabled healthcare solutions. Additionally, the expansion of universal health coverage through increased funding for Ayushman Bharat (PMJAY) aims to provide health insurance to economically weaker sections, ensuring broader access to medical services. Investments in rural and primary healthcare have also grown, with a focus on strengthening Primary Healthcare Centers (PHCs) to enhance preventive care. Furthermore, greater financial support for medical infrastructure, including the establishment of new AIIMS hospitals, medical colleges, and R&D in pharmaceuticals and vaccines, represents a long-term commitment to improving healthcare services.

Despite these positive strides, several areas still require attention. India’s healthcare spending remains below global standards, at around 1.5-2% of GDP, whereas the WHO recommends at least 5%. Compared to developed nations, where public healthcare spending is significantly higher, India’s allocation is still insufficient. A critical challenge is the underfunding of public healthcare, leading to continued reliance on private hospitals and higher out-of-pocket expenses for patients. Moreover, gaps in implementation and fund utilization persist, as previous budgets have witnessed underutilization of funds at the state level, causing delays in policy execution and reducing real-world impact. Mental healthcare remains underfunded despite rising demand, highlighting the need for greater investment in psychological and psychiatric services. Additionally, the shortage of healthcare professionals, including doctors and nurses, continues due to limited investment in medical education and workforce training. While the budget’s focus on digital health, rural healthcare, and AI-driven solutions is a positive step, the overall GDP spending on healthcare remains stagnant, necessitating further policy enhancements and increased allocations to address existing gaps

Key Focus Area

The Union Budget 2025-26 underscores the Government of India’s dedication to enhancing cancer care through several key initiatives:

Day Care Cancer Centres: The government plans to establish Day Care Cancer Centres in all district hospitals over the next three years, with 200 centres slated for 2025-26.
Customs Duty Exemptions:
To alleviate treatment costs, 36 lifesaving drugs and medicines for treating cancer, rare diseases and chronic diseases fully exempted from Basic Customs Duty (BCD)
Six lifesaving medicines to attract concessional customs duty of 5%

Furthermore, specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies fully exempted from BCD. Patient Assistance Programmes (PAPs) – These are initiatives run by pharmaceutical companies to provide free or subsidized medicines to economically disadvantaged patients suffering from chronic or life-threatening diseases like cancer, rare diseases, and other critical conditions. In the Indian Union Budget 2025-26, the government has fully exempted specified drugs and medicines under Patient Assistance Programmes (PAPs) from Basic Customs Duty (BCD).

Holistic Cancer Control: A Policy-Driven Approach

1. National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) – T

Flagship Initiative: Launched in 2010 under the National Health Mission (NHM) to address the growing burden of non-communicable diseases (NCDs), including cancer.
Focus Areas: Prevention, early detection, and treatment infrastructure for cancer, with an emphasis on oral, breast, and cervical cancers.
Key Components:
- Cancer Screening: Community-level screening for oral, breast, and cervical cancers.
- Early Detection & Awareness: Engagement of health workers and digital platforms.
- Infrastructure Development: Establishment of Tertiary Cancer Centers (TCCs) and State Cancer Institutes (SCIs).
Healthcare Facilities Established:
- 770 District NCD Clinics
- 233 Cardiac Care Units
- 372 District Day Care Centres
- 6,410 Community Health Centre (CHC) NCD Clinics
Impact: These facilities ensure accessible and affordable cancer screenings, improving early detection and treatment outcomes.

2. Strengthening of Tertiary Care for Cancer Scheme

It enhances specialized cancer care facilities with aims to decentralize cancer treatment, making services more accessible across states.

Tertiary Cancer Care Network Strengthening

India has significantly expanded its cancer treatment ecosystem, with the establishment of:
19 State Cancer Institutes (SCIs)
20 Tertiary Care Cancer Centres (TCCCs)

The National Cancer Institute (NCI) in Jhajjar, Haryana, and the second campus of Chittaranjan National Cancer Institute (CNCI) in Kolkata are playing a pivotal role in providing cutting-edge cancer treatment and research opportunities.

Other centres

Homi Bhabha Cancer Hospital and Research Centre, New Chandigarh

Inauguration: Established in 2022, this 300-bed oncology hospital in New Chandigarh, Punjab, operates under the Tata Memorial Centre.
Facilities: The hospital offers comprehensive cancer care with departments like Medical Oncology, Surgical Oncology, and Radiation Oncology. It is equipped with advanced diagnostic tools, including 3T MRI, CT scan, ultrasonography, mammography, and digital X-ray units.
Health Schemes: Patients can benefit from health schemes such as Ayushman Bharat (Sarbat Sehat Bima Yojna) and Mukh Mantri Punjab Cancer Rahat Kosh Scheme, providing financial assistance for treatments.

Chittaranjan National Cancer Institute (CNCI), Kolkata

Second Campus: In January 2022, CNCI expanded by inaugurating a new campus in New Town, Kolkata. This state-of-the-art facility, built at a cost of approximately ₹1,000 crore, includes 650 beds and modern amenities for comprehensive cancer treatment.
Accreditations: The Rajarhat campus received recognition from the National Accreditation Board for Hospitals & Healthcare Providers (NABH) in June 2023, underscoring its commitment to quality cancer care.
Medical Achievements: In February 2023, CNCI performed its first stereotactic radiosurgery, a high-end procedure for brain tumor treatment, marking a significant milestone for government hospitals in the state.

IPGMER and SSKM Hospital, Kolkata

Cancer Care Collaboration: In June 2021, the West Bengal government partnered with Tata Memorial Centre, Mumbai, to establish two advanced cancer hospitals in the state. One of these units is being developed within the SSKM Hospital campus.
Chemotherapy Services: Since April 2022, SSKM Hospital has initiated chemotherapy daycare services at its Annex-6, Kolkata Police Hospital. The facility currently accommodates 32 beds, serving approximately 50 patients daily, focusing on treatments for breast, lung, head and neck, and cervical cancers.
Oncopathology Accreditation: The hospital’s oncopathology department achieved accreditation from the National Accreditation Board for Testing and Calibration Laboratories (NABL), a first for a state government hospital in eastern India, reflecting its dedication to maintaining high standards in cancer diagnostics.

3. Ayushman Bharat Yojana

Launched: 2018 as a landmark health initiative for universal health coverage, particularly benefiting rural and vulnerable populations.
Cancer Treatment Coverage:
- Ensures timely treatment within 30 days.
- Covers chemotherapy, radiotherapy, and surgical oncology for economically weaker families.
Impact Till 2024:
- Over 90% of registered cancer patients have started treatment under the scheme.
- Significant reduction in out-of-pocket expenses, providing financial protection to millions.
Healthcare Network:
- 24,432 public and private hospitals empaneled nationwide to offer cashless and paperless healthcare services.

4. The Health Minister’s Cancer Patient Fund (HMCPF): The Health Minister’s Cancer Patient Fund under Rashtriya Arogya Nidhi (RAN) provides financial aid up to ₹5 lakh for cancer treatment to patients below the poverty line. The maximum financial assistance admissible under the Scheme will be ₹15 Lakh. It covers treatment at 27 Regional Cancer Centres (RCCs), with ₹50 lakh revolving funds allocated to each center. Established in 2009, the scheme ensures accessible and affordable cancer care for underprivileged patients.

5. National Cancer Grid (NCG):

Established: 2012 to ensure high-quality, standardized cancer care across India.
Largest Cancer Network:
- 287 members, including cancer centers, research institutes, patient advocacy groups, charitable organizations, and professional societies.
- Treats over 750,000 new cancer patients annually—covering 60% of India’s total cancer burden.
Collaboration with Ayushman Bharat – PMJAY:
- Provides affordable, evidence-based cancer treatment.
- Helps streamline treatment costs under the scheme.
Key Contributions:
- Played a major role in shaping the National Digital Health Mission (NDHM).
- Contributed to the development of electronic patient health records.

Advancing Cancer Research and Treatment

1. India’s First Indigenous CAR-T Cell Therapy: NexCAR19 – A Breakthrough in Cancer Treatment

In April 2024, India achieved a historic milestone in cancer care with the launch of NexCAR19, the nation’s first indigenously developed CAR-T cell therapy, created through a groundbreaking collaboration between IIT Bombay, Tata Memorial Centre, and ImmunoACT. This cutting-edge innovation offers a highly effective, next-generation treatment for blood cancers, bringing hope to thousands of patients. Designed to be affordable and accessible, NexCAR19 marks a critical step towards self-reliance in oncology care, reducing dependence on expensive imported therapies and strengthening India’s position in advanced cancer treatment and biotechnology research.

2. Quad Cancer Moonshot Initiative

In Sep 2024, India, in partnership with the US, Australia, and Japan, has launched the Quad Cancer Moonshot to eliminate cervical cancer across the Indo-Pacific region.

This initiative aims to scale up screening and vaccination programs, advance cutting-edge research, and strengthen global collaboration to ensure early detection, effective treatment, and improved survival rates.

3. Expansion of ACTREC

In January 2025, the Advanced Centre for Treatment, Research, and Education in Cancer (ACTREC), a key arm of Tata Memorial Centre (TMC), embarked on a major expansion to revolutionize cancer research, treatment, and patient care. This initiative aims to accelerate clinical breakthroughs, enhance oncology care, and establish cutting-edge therapeutic facilities, reinforcing India’s leadership in advanced cancer treatment and innovation.

Awareness Generation

The Indian government is working to raise awareness about cancer prevention and treatment in several ways:

These efforts aim to educate people on leading a healthy lifestyle, preventing cancer, and seeking timely medical care.

India has made significant progress in cancer prevention, treatment, and research through policy reforms and expanded healthcare infrastructure.
The Union Budget 2025-26 prioritizes cancer care with initiatives such as Day Care Cancer Centres and customs duty exemptions on life-saving drugs.
Key programs like NPCDCS, PMJAY, and HMCPF facilitate affordable treatment and promote early detection.
Research initiatives such as NexCAR19 and the National Cancer Grid are advancing oncology care and innovation.
Despite advancements, challenges persist in equitable access, early detection, and rising cancer cases across the country.
Increased investment in awareness, lifestyle interventions, and technology-driven solutions is essential to combat the growing burden of cancer.
A multi-sectoral approach and sustained government efforts aim to build a comprehensive, inclusive cancer care system, improving patient outcomes nationwide.