Union Budget 2026 | Spotlight on social welfare; boost rural development, health and education

The social welfare saw a central focus on the Union Budget 2026-27 as estimated allocations for rural development, health, and education saw leading priority.

The rural development was allocated Rs 2,73,108 lakh crore as Budget Estimates, education at Rs 1,39,298 lakh crore, health at Rs 1,04,599 lakh crore, urban development at 85,522 crore, and social welfare at Rs 62,326 crore.

In her speech, Union Finance Minister Nirmala Sitharaman announced the setting up a mental healthcare hospital similar to Nimhans in north India, and proposed exempting 17 anti-cancer drugs from basic customs duty and doing away with duties on the personal import of "drugs, medicines and food for special medical purposes" for seven more rare diseases.

She also called for the strengthening of the paramedical workforce and the expansion of trauma care facilities in district hospitals.

"There are no national institutes for mental healthcare in north India. We will therefore set up a Nimhans-2 and also upgrade National Mental Health Institutes in Ranchi and Tezpur as regional apex institutions," she said.

Furthermore, the government announced setting up of a new National Institute of Design through the Challenge route in eastern India.