Ahead of Budget 2026–27, NATHEALTH seeks higher healthcare spending, infra fund and preventive-checkup tax break
NATHEALTH, in pre-Budget recommendations, called for healthcare to be treated as core infrastructure, proposed a ₹50,000 crore healthcare infrastructure fund, and flagged India’s rising NCD burden while seeking incentives to boost preventive screening.
Industry body pitches a “future-ready” health system
As pre-Budget consultations and expectations build for Union Budget 2026–27, NATHEALTH has urged the government to raise healthcare spending and accelerate reforms aimed at infrastructure, innovation, insurance expansion and preventive care. A Times of India report said the body called for a balanced approach combining fiscal support, structural changes and public-private collaboration to strengthen healthcare delivery.
A key demand is to recognise the healthcare sector as ‘core infrastructure’—a classification that typically improves access to long-term finance for projects with long gestation periods, such as hospitals and diagnostic networks. NATHEALTH also proposed a ₹50,000 crore healthcare infrastructure fund to address the challenge of limited low-cost capital for building capacity.
NCD burden drives the preventive-care ask
The recommendations also highlight India’s growing burden of non-communicable diseases (NCDs). The report noted NATHEALTH’s assessment that NCDs account for nearly 65% of all deaths in India, strengthening the case for early detection and screening at scale.
To encourage preventive health behaviour, NATHEALTH suggested a tax deduction of up to ₹10,000 for individuals for preventive health check-ups. The rationale is to increase uptake of screening, reduce late-stage diagnosis, and ultimately lower the long-term treatment and productivity costs that chronic illnesses impose on households and the economy.
What to watch in the Budget
- Whether healthcare gets an explicit “core infrastructure” tag or similar financing support
- Any announcement of a dedicated infrastructure fund for hospitals and diagnostics
- Personal tax incentives that reward preventive screening and routine check-ups
- Spending signals for capacity building in tier-2 and tier-3 regions
The recommendations frame healthcare not only as social spending but as productivity infrastructure—arguing that preventive care and faster capacity expansion can reduce avoidable disease burden and improve outcomes over the medium term.