Indian Healthcare Budget Allocation for the year 2012 – 2013

Statistics, numbers, allocations, and random comparisons with previous years. For the record only.

Overall healthcare budget allocation for the Ministry of Health & Family Welfare for the year 2012-2013 is Rs. 26,760 crore

Here are the allocated amounts over a past few years.

  • 2011-2012: Rs.26,760 crore
  • 2010-2011: Rs.22,300 crore
  • 2009-2010: Rs.19,534 crore
  • 2008-2009: Rs.16,543 crore
  • 2007-2008: Rs.15,291 crore

National Urban Health Mission
Along with proposed increase in the budget allocation of National Rural Health Mission that addresses the healthcare needs of rural India, the Government has proposed the launch of National Urban Health Mission. This is to meet the primary healthcare needs of urban poor and slum dwellers and those who live in shanties in cities.


Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)
The Government also allocated a huge chunk of the health budget on setting up the eight AIIMS-like institutes in the country and also upgrade the existing Government Medical Colleges. The aim behind setting up these institutes is to correct the regional imbalance in the availability of affordable and reliable healthcare services to the rural and poor populace.

To meet the healthcare needs of the urban masses and poor, the government is upgrading the existing hospitals and establishing new hospitals under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) scheme.

  • Budget allocation for setting up super-specialty healthcare institutes for 2012-2013: Rs. 1,544.21 crore
  • Budget allocation for setting up super-specialty healthcare institutes for 2011-2012: Rs. 1,616 crore

Each hospital will have 960 beds and will provide undergraduate medical education to 100 students per year. Postgraduate and postdoctoral courses will also be offered.

These institutes will be established in two phases.

Phase 1: Six centres will be established in

  • Patna (Bihar)
  • Raipur (Chhattisgarh)
  • Bhopal (Madhya Pradesh)
  • Bhubaneswar (Odisha)
  • Jodhpur (Rajasthan)
  • Rishikesh (Uttarakhand)

Phase 2: Two more institutes will come up in Uttar Pradesh and West Bengal.

Seven medical colleges, including Vijaynagar Institute of Medical Sciences in Bellary, will receive close to Rs 500 crore for upgrading their facilities. Other six medical colleges include Jhansi, Rewa, Gorakhpur, Darbhanga, Muzaffarpur and Kozhikode.


Budget Allocation for Hospitals and Research Institutes
With Rs.1,124 crore, the prestigious All India Institute of Medical Sciences (AIIMS) in the national capital tops the list of hospitals and research institutes with the maximum budgetary allocation.

  • AIIMS (Delhi) for 2012-2013: Rs. 1124 crore (Rs.1022 crores in 2011-2012)
  • Safdarjung Hospital (Delhi) for 2012-2013: Rs. 467 crore (Rs.345 crores in 2011-2012)
  • Ram Manohar Lohia Hospital (Delhi) for 2012-2013: Rs. 322 crore (Rs.283 crores in 2011-2012)
  • The Lady Hardinge Medical College for 2012-2013: Rs. 223 crore (Rs.194 crores in 2011-2012)
  • The PGIMER ( Chandigarh) 2012-2013: Rs. 546 crore (Rs.470 crores in 2011-2012)
  • The Kalawati Saran hospital (Delhi) for 2012-2013: Rs. 61 crore (Rs.56 crores in 2011-2012)


The Rashtriya Swasthya Bima Yojana (RSBY)
The Rashtriya Swasthya Bima Yojana (RSBY) , health insurance for the poor has been extended to cover MGNREGA beneficiaries. This scheme will also include covering people who work in unorganized sectors in hazardous conditions/ mine workers.


Integrated Child Development Scheme (ICDS)
To restructure and strengthen the ICDS scheme and to bring down embarrassing malnutrition levels child health disorders in the country, the Government has proposed almost 58% increase in the ICDS allocation.

  • ICDS Allocation in Budget 2012- 2013: Rs.15,850 crore
  • ICDS Allocation in Budget 2011- 2012: Rs.10,330 crore
  • ICDS Allocation in Budget 2010- 2011: Rs.07,932 crore
  • ICDS Allocation in Budget 2009- 2010: Rs.06,705 crore
  • ICDS Allocation in Budget 2008- 2009: Rs.06,300 crore


The Department of AIDS Control
The Department of AIDS Control will get Rs 1,700 crore for the fiscal 2012-13 towards expenditure for care, support and treatment of HIV infected people.

Of this:

  • Rs 722.12 crore will go as grants in aid to state AIDS Control Societies (towards prevention activities like targeted intervention, sexually transmitted infection, blood safety, mainstreaming, surveillance and link worker scheme) in comparison to Rs 389.94 crore allocated last year.
  • Rs 487.29 crore as procurements (procurement of drugs, kits, consumables and equipment) as opposed to last year’s Rs 492.43 crore.
  • Rs 234 crore for supply of Condoms
  • Rs 170 crore has been earmarked for schemes and projects for the benefit of North East region and Sikkim as per guidelines of the Planning Commission

The government has chalked out a Rs 8 crore plan to set up four blood banks at Chennai, Delhi, Kolkata, and Mumbai and a plasma fractionation centre.

  • Allocation for The Department of AIDS Control in Budget 2012-2013: Rs 1,700 crore
  • Allocation for The Department of AIDS Control in Budget 2011-2012: Rs 1,500 crore


Customs Duty Exemptions on Life Saving Drugs
The Government has proposed to extend concessional basic customs duty of 5% with full exemption from excise duty and anti-subsidy duty to six life savings drugs/vaccines and their bulk drugs used in the manufacture of said drugs.

These life saving drugs and vaccines are used for the treatment or prevention of ailments such as HIV/AIDS, heart attack, renal cancer and life-threatening infections related to rota virus and thalassaemia vaccines

It also did not extend the list of life saving drugs.


Reduction in Excise Duty on Specified Raw Materials for Disposables and Consumables
The reduction of excise duty and customs duty to 6% on specified raw materials for manufacture of syringes, needles, catheters and cannulae makes them available at cheaper rates for the patients.

The basic customs duty is being reduced to 2.5 per cent along with 6 per cent CVD and Nil SAD on specified raw materials viz polypropylene, Stainless Steel Strip and Stainless Steel capillary tube for manufacture of syringe, needle, catheters and cannulae on actual user basis.

The full exemption from basic custom duty, CVD (Countervailing Duty) and SAD (Special Additional Duty) is being provided to specified raw materials viz stainless steel tube and wire, cobalt chromium tube, Hayness Alloy-25 and polypropylene mesh required for manufacture of Coronary stents/ coronary stent system and artificial heart valve on actual user basis.


Service Tax Exemption
All healthcare services exempted from service tax.

However hospitals with twenty five or more beds and central air conditioning will not get this exemption. 5% tax will be levied on the actual value of the services provided by these hospitals and diagnostic tests.

All Government hospitals shall be exempted from service tax.


Accredited Social Health Activists (ASHAs)
The scope of Accredited Social Health Activist’s (ASHA) activities have been increased to include prevention of Iodine Deficiency Disorders, ensure 100 percent immunisation and better spacing of children.


Generic Medication
With an allocation of Rs 100 crores from the Finance Ministry, the Government proposes providing free generic medicines in public healthcare centres.


Preventive Health Check Up
Preventive Healthcare Market get a shot in the arm with the Government allowing tax relief of up to Rs.5,000 for preventive health check-up/ health prevention screening.

Consumers will also get tax benefits of up to Rs 5,000 for the preventive health check-ups undertaken.


Duty on cigarettes, bidis, tobacco and paan masala will be increased making them more expensive. But this move has been criticized as marginal increase in the price will not have a substantial public health benefit.


Health Research
The department of Health research has been allocated a total budget of Rs.660 crore as against Rs.588.26 crore in 2011-2012.

  • Budget allocation for Department of Health Research for 2012-2013: Rs.660 crore
  • Budget allocation for Department of Health Research for 2011-2012: Rs. 588.26 crore

Research on matters related to epidemics, natural calamities and development of tools to prevent outbreaks of infectious diseases has been given more priority this year (2012-13).

Health Research got a hike of 96 per cent in budgetary allocations with Rs. 30 crore out of the department’s total outlay of Rs.660 crore earmarked for developing tools for prevention and management of epidemics.

  • Budget allocation for Health Research for 2012-2013: Rs. 30 crore
  • Budget allocation for Health Research for 2011-2012: Rs. 15.26 crore

The Indian Council of Medical Research, the apex body in the country to promote, co-ordinate and formulate biomedical and health research gets an increase in maintenance grants by the Central Government for research in health, nutrition, non-communicable diseases and basic research. The Council is also engaged in research on tribal health, traditional medicine and publication and dissemination of information.

  • Budget allocation for ICMR for 2012-2013: Rs. 710 crore
  • Budget allocation for ICMR for 2011-2012: Rs. 621.85 crore


Nota Bene: The above information has been collated from various sources, including the MOHFW, Union Budget Documents, etc. Please inform us of any discrepancies, errors or broken links, as this website aims to remain informative in nature. We will continue to update the figures and statistics every year.


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