Union Budget raises Ayushman Bharat allocation for next fiscal by 24% to Rs 9,406 crore

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Centre has allocated Rs 9,406 crore for health insurance scheme under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), raising the FY26 outlay by 24% as against the Revised Estimate of Rs 7,606 crore of FY25.

Finance Minister Nirmala Sitharaman also said that gig workers will be provided healthcare under the government’s flagship Ayushman Bharat scheme. "Gig workers of online platforms provide great dynamism to the new-age services economy. Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly one crore gig-workers," FM Sitharaman said in the budget speech.

NITI Aayog defines gig workers as those who are employed 'outside the traditional employer-employee arrangement'. These workers broadly fall into two categories - platform and non-platform-based workers.

Ayushman Bharat has seen enrolments go up to 35.49 crore from just 5.8 crore five years ago.

As of September 2024, the number of Ayushman Bharat beneficiaries had risen by 42% over 2023, according to government data. Hospitalisations were 19.9% higher at 6.86 crore as of September 2024. A Moneycontrol analysis showed that less-populated states like Tamil Nadu and Karnataka accounted for 26.5% of the total hospitalisation. In comparison, states like Uttar Pradesh and Bihar had a 6.1% share in hospitalisations.

What is Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)?

The Ayushman Bharat scheme was launched in September 2018 by Prime Minister Modi as part of the National Health Policy 2017, and has become the largest health insurance scheme in the world. The scheme aims to provide annual health coverage of Rs 5 lakh per family for secondary and tertiary care hospitalisation across public and private-empanelled hospitals.