Listed are the main highlights of the Union Budget 2013-14 with regard to the health sector. Also find attached the major announcements of the previous budgets.

Budget 2013-14 and Health Sector

Ministry of Health and Family Welfare

  • Budget Allocation of Rs.37, 300 crores to the Ministry of Health and Family Welfare. Of this, the new National Health Mission that combines the rural mission and the proposed urban mission will get Rs.21,239 crore, an increase of 24.3 percent over the RE.
  • Allocation of Rs. 4,727 crores for medical education, training and research
  • Allocation of Rs. 150 crores for the National Programme for the Health Care of Elderly. This programme is being implemented in 100 selected districts of 21 States. Eight regional geriatric centers are being funded for the development of dedicated geriatric departments.
  • Allocation of Rs. 1,069 crore to the Department of AYUSH for mainstreaming Ayurveda, Unani, Siddha and Homoeopathy through the National Health Mission
  • Allocation of Rs.1,650 crore for he six AIIMS-like institutions being set up


  • Allocation of Rs. Rs.17,700 crore in 2013-14, compared to Rs.15,850 crore in 2012-13, which is an increase of around 11.7%
  • A multi-sectoral programme for reducing maternal and child malnutrition that was announced last year will be implemented in 100 districts during 2013-14 and it will be scaled up to cover 200 districts the year after. Allocation of Rs. 300 crore for the programme in 2013-14.

Health Insurance

The Rashtriya Swasthiya Bima Yojana covers 34 million families below the poverty line. It will now be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers, sanitation workers, rag pickers and mine workers.

The Budget proposes a comprehensive and integrated social security package for the unorganised sector that will benefit the poorest and most vulnerable sections of society. The package should include life-cum-disability cover, health cover, maternity assistance and pension benefits. The present schemes such as AABY, JSBY, RSBY, JSY and IGMSY are run by different ministries and departments. The Budget proposes to facilitate convergence among the various stakeholder ministries/departments so that we can evolve a comprehensive social security package

Direct Taxes

Contributions made to the Central Government Health Scheme are eligible for deduction under section 80D of the Income-tax Act. The budget proposes to extend the same benefit to similar schemes of the Central Government and State Governments.

Indirect Taxes

The budget proposes to provide for MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine. There will be an abatement of 35 percent.


Budget and Health Sector 2010-13.pdf