Major push for Delhi's critical healthcare in Sitharaman's budget, AIIMS leads with Rs 5,500 cr

• AIIMS Delhi gets record Rs 5,500.9 crore in 2026–27 Union Budget
• Major central hospitals in Delhi see significant funding increases
• Delhi's overall budget allocation remains unchanged at Rs 1,348 crore

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In a significant move to bolster critical healthcare infrastructure, the Union Budget for 2026–27 has substantially increased funding for Delhi’s premier central government hospitals. The allocations signal a concerted push to sustain and expand high-volume tertiary care, medical education and specialised services that serve millions across north India.

The All India Institute of Medical Sciences (AIIMS), New Delhi, the nation’s flagship medical institution, has been granted its highest-ever budgetary outlay of Rs 5,500.9 crore. This marks an increase of Rs 262.2 crore over the previous year’s revised estimates.

According to government officials, the enhanced funding is critical for supporting advanced clinical care, cutting-edge research and specialist training programmes at the institute.

Other major referral centres have seen even steeper rises. The combined allocation for Dr Ram Manohar Lohia Hospital and the Atal Bihari Vajpayee Institute of Medical Sciences has surged by nearly 20%, from Rs 1,214.7 crore to Rs 1,450.7 crore. This sharp increase, officials noted, is necessitated by rapidly expanding medical services and higher operational demands.

Safdarjung Hospital, consistently ranked among the busiest public hospitals in the country, along with its affiliated Vardhman Mahavir Medical College, received Rs 2,170.7 crore — an increase from Rs 2,045 crore in 2025–26. The institution functions as a vital referral hub for complex cases from surrounding states.

Funding for key women’s and children’s healthcare institutions also saw modest but consistent growth. Lady Hardinge Medical College and the associated Smt Sucheta Kriplani Hospital were allocated Rs 795.9 crore, up from Rs 770 crore. Kalawati Saran Children’s Hospital received a marginal increase to Rs 182.2 crore from the revised estimate of Rs 177 crore.

Senior health ministry officials, speaking on background, emphasised that the primary aim of the enhanced allocations is to address three persistent challenges: managing the enormous and unrelenting patient inflow, modernising ageing physical infrastructure and covering escalating day-to-day operational costs.

These central hospitals in the capital serve as a healthcare lifeline not only for Delhi’s residents but for a vast population across northern India, often handling the most complex and resource-intensive cases.

What Union Budget gave to Delhi for 2026-27 

The Union Budget 2026-27 has kept Delhi’s allocation unchanged at Rs 1,348 crore, the same as the previous year. This marks the first budget for the city under the new BJP government.

Chief Minister Rekha Gupta welcomed the budget, calling it a step toward realising Prime Minister Narendra Modi’s vision of a ‘Viksit Bharat’. “The budget provides a solid foundation for Delhi’s growth and development,” she said.

According to the budget documents, Delhi will receive a total transfer of Rs 1,348.01 crore from the Union Ministry of Home Affairs. From the total allocation, Rs 968.01 crore falls under revenue expenditure, while Rs 380 crore will be for capital projects. These figures mirror the 2025–26 budget estimates.

Out of the total, Rs 951 crore is designated as Central assistance for Union Territories, aimed at supporting various city government schemes. An additional Rs 380 crore has been allocated for the Chandrawal Water Treatment Plant under an externally aided project. This project is designed to improve water supply infrastructure, ensure equitable distribution across the command area, and provide a continuous 24x7 water supply.

The budget also includes Rs 2 crore for enhanced compensation to the victims of the 1984 anti-Sikh riots. Delhi will receive Rs 15 crore as a contribution to the Union Territory Disaster Response Fund, which supports relief measures during natural disasters like floods, earthquakes, and droughts.

Chief Minister Gupta highlighted other key initiatives supported by the budget. She noted that a total provision of Rs 1.4 lakh crore has been allocated to states for rural and urban local body development and disaster management. She also pointed to Delhi’s connectivity boost, announcing that the city will be linked to a high-speed rail network. The proposed Delhi–Varanasi high-speed rail corridor is expected to be a historic step toward achieving a ‘Viksit Bharat’.

Meanwhile, Delhi Police has been allocated Rs 12,846.1 crore in the 2026-27 Union Budget, an increase of 4.78% from the 2025-26 fiscal year. The funds will be used to pay for day-to-day operational costs, salaries, and pensions, as well as for specific schemes such as the development of a model traffic management system and the strengthening of an integrated communication network.