Ahead of Budget 2026, NATHEALTH urges higher public health spend and stronger prevention to tackle rising NCD burden
Healthcare industry body NATHEALTH has called for raising public health expenditure to over 2.5% of GDP and proposed a large healthcare infrastructure fund, as it flags India’s growing non-communicable disease burden and the need to boost preventive screening and long-term system resilience.
- Reporting desk
- Health India Network News Desk
- First published
With the Union Budget 2026 due on February 1, healthcare industry body NATHEALTH has urged the government to increase public healthcare spending to over 2.5% of GDP and take sharper steps to address the rising burden of non-communicable diseases (NCDs). In its pre-Budget recommendations, the industry group argued that a stronger health system needs a blend of fiscal support, structural reforms and public–private collaboration.
NATHEALTH’s pitch focuses on both capacity and prevention. It has sought recognition of healthcare as ‘core infrastructure’ and proposed the creation of a ₹50,000-crore healthcare infrastructure fund, pointing to the long gestation periods and financing needs of hospitals and diagnostic networks. The argument is that cheaper, longer-tenure capital can unlock expansion into underserved areas and improve access and quality.
A central concern flagged is the growing dominance of chronic illness. NATHEALTH noted that NCDs account for nearly 65% of all deaths in India, underscoring the need for more effective screening and early detection. To improve uptake of preventive checks, it recommended tax deductions of up to ₹10,000 for individuals for preventive health check-ups.
The group also highlighted that public health spending—cited as 1.9% of GDP in 2023–24 per official data referenced in the report—needs to rise to match the scale of the challenge. In its view, stronger public spending can improve primary care, strengthen disease surveillance, expand insurance and reduce out-of-pocket costs, especially for families managing long-term conditions.
On the innovation side, NATHEALTH suggested creating a national network of accredited reference laboratories with an outlay of ₹1,000 crore and an innovation fund of ₹5,000–7,000 crore to support deep-tech and collaboration between providers and innovators. The objective is to strengthen diagnostics, standardise quality and accelerate adoption of new solutions in a fragmented ecosystem.
Overall, the recommendations position health spending not just as welfare but as long-horizon economic resilience. The thrust is that prevention, early detection, and better infrastructure can reduce the downstream cost of chronic disease—improving productivity while also protecting households from catastrophic medical expenditure.