As the Union Budget 2026-27 approaches, Jan Swasthya Abhiyan (JSA) has asserted that the commitments made in the National Health Policy (PNS) 2017 they are not being fulfilled. The NHP promised public health spending of 2.5% of GDP by 2025, but this remains low at 1.15%. In this context, JSA published a demand letter supported by 350 organizations and individuals outlining urgent budget priorities.
In a virtual press conference on Wednesday, Indranil, co-convener of the JSA national secretariat, flagged his deep concern over the fact that the Union government’s spending on health post-Covid has continuously declined in real terms, making it impossible for the NHP 2017 target to be achieved by 2025.
“The policy promised 2.5% of GDP for health, but it is only 1.15%, a stark gap. To meet the NHP commitment, Union allocations for health in budget 2026-27 should double. “It is the same government that made the promise and should now fulfill it,” Indranil said.
The JSA’s demands include that the Union government’s allocation for health in the 2026-27 budget be doubled from the current 0.3% of GDP to meet the target of 1% of GDP (approximately around 5% of GDP) in two years. Union Budget) set for 2025 by the National Health Policy – 2017.
“Overall public health spending should rise further to 3.5% of GDP by 2030,” JSA experts said. The demand also includes that the allocation to NHM should be doubled, to support strengthening and expansion of health services, besides improvement of health and wellness centres, ensuring justice for health personnel, including ASHAs and contractual workers.
At least two-thirds of the Union health budget should be transferred to the states as states bear two-thirds of the total burden of public health expenditure, the letter states, adding that the revenue from the health tax amount should be used to supplement resources dedicated to health, rather than replacing major budgetary allocations.
Ravi Duggal, sociologist, health researcher and activist, also explained that the decline in the percentage of Union health resources transferred to the states is extremely alarming. “Union transfers to states for health have fallen from 75.9% in 2014-15 to just 43% in 2024-25 (budget estimates), undermining basic services. This trend reflects the hyper-centralization of finance even though health services largely fall within the domain of states. It is important to recognize that during and after Covid, states have maintained higher spending levels despite constraints. This commitment should be supported, not undermined,” he said.
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Other demands include phasing out PMJAY and giving primacy to strengthening and expanding public healthcare. Richa Chintan, co-convener of the JSA national secretariat, said the harshest cuts are affecting programs that strengthen the public system – National Health Mission (NHM), Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), nutrition and research – despite their value in difficult times.
“NHM funding has declined in real terms by 5.5% on an average. Even within limited allocations, the push continues towards private partnerships and insurance-based models like PMJAY. This is happening despite ample evidence showing the limits of insurance-based healthcare models in ensuring access and equity. We need to double NHM funding, move away from privatization and revive core pharma and vaccine PSUs,” Chintan said.