Health experts have pointed out that the allocation of ₹19,264 crore to the Health Department in the Budget 2026–27 is disappointing, as it shows no significant increase compared with the revised estimates for 2025–26, which stood at ₹17,637.24 crore.
While the allocations to the sector have increased significantly from ₹11,673 crore in the year 2020-21, experts said that the health outlay for the year 2026-27 is falling short of the requirements set by the National Health Policy-2017. The policy had suggested that the State governments spend more than 8 per cent of their total budget on health by 2020. However, the A.P. government is yet to reach the goal, as this year’s allocations are 5.81 per cent of the total Budget.
Kameswara Rao of Praja Arogya Vedika said, “The government does not seem to have factored in inflation and rising disease burden. We expected measures for special tribal packages and strengthening of Public Distribution System.” Last week, the organisation had urged the government to allocate at least 2.5 per cent of the State’s gross domestic product (GSDP) to health. “The Budget estimates for 2026-27 is nowhere near the goal,” he added.
Responding positively to the Budget, D. Jayadheer Babu of the Government Doctors’ Association said that the State government has helped those in need beyond the Budgetary framework as well.
Allocations to Dr. NTR Vaidya Seva
This year, the government allocated ₹4,000 crore for the Dr. NTR Vaidya Seva Trust, which is the same as the allocations made in the year 2025-26 and 2024-25. It may be noted that the State government already has outstanding dues amounting to ₹3,000 crore in the current financial year, payable to the network hospitals.
“The annual budget of running the scheme itself is ₹4,000 crore. With a total budget of ₹4,000 crore for the scheme, how is the government intending to clear the pending dues? It appears that the government is not serious with the allocations, as they seem to have taken no corrective measures,” said Dr. Vijay Kumar, president of the A.P. Speciality Hospitals Association.
The association has approached the High Court for intervention in the matter. The members have said failure to address this issue promptly may severely affect the participation of specialty hospitals in government health schemes, ultimately impacting patient care.
Published – February 14, 2026 10:53 pm IST
