Tamil Nadu budget 2026-27: Rs 23,357 crore allocated to health sector
Healthcare Budget
Chennai: The Tamil Nadu government has allocated Rs 23,357 crore to the Health and Family Welfare Department in the 2026-27 Budget, marking an increase of Rs 1,451 crore, which is 6.6% over the previous year's allocation. The outlay is also Rs 1,267 crore (5.7%) higher than the interim budget presented earlier this year.
Presenting the Budget in the Assembly on Wednesday, Finance Minister N. Marie Wilson said the additional allocation would support new initiatives in cancer care, geriatric healthcare, chronic disease management, and the treatment of high-risk pregnancies. The measures are aimed at improving access to specialist medical services, particularly for people living in rural areas, reports The Daily.
According to the Times of India, the Budget comes amid a rising cancer burden in the state. New cancer cases in Tamil Nadu increased from 69,517 in 2017 to 76,968 in 2021 and are projected to exceed one lakh in 2025, reaching 103,707 in 2026. The disease continues to affect women disproportionately, with a crude incidence rate of 102.7 per 100,000 population, compared with 80.9 per 100,000 among men.
Wilson stated that to provide patients with an initial point of contact and to start a cancer research facility, Rs 10 crore has been earmarked to complete the project report for five zonal cancer hospitals. The centres are structured after a hub-and-spoke model to facilitate advanced treatment closer to patients’ homes.
As far as the aging population is concerned, in Tamil Nadu, the number of people aged has increased nearly 16% from 10.6% in 2011, and it might double to 20.8% by 2036, which is equal to one in five residents, with life expectancy reaching 71.7 years for men and 75.8 years for women. Chennai, despite having a National Institute of Ageing and geriatric wards in most govt hospitals, has no dedicated centre for older adults.
Wilson has recently confirmed that Rs 33 crore has been kept to be invested in phases for 1,000 mobile geriatric treatment units, reports the daily. To ensure free and accessible check-ups and medicine for chronic conditions, the unit will send a doctor, a nurse, and a physiotherapist to villages.
The minister also shared his plans regarding expanding the specialist care opportunities, as he has proposed to launch a telemedicine network on a hub-and-spoke model. The network will connect five specialist-staffed hubs to 200 primary health centres and government hospitals. With plans to expand later to 1,000 hubs, the project has already secured a budget of Rs 18.5 crore.
The project will especially benefit rural patients who will not need to travel long distances for consultation. Considering that, with frequent screening and improved early detection, more patients need ongoing treatment for hypertension, diabetes, and cancer, the state has increased its medicine budget by Rs 100 crore.
The state has also thought of making provisions for maternal and child healthcare. According to the Daily, in Tamil Nadu, an estimated 99% of births occur in institutional settings, with an infant mortality rate of 11 per 1,000 live births. Government hospitals manage a minimum of 53% of total deliveries. According to the National Sample Survey Office 80th round health survey, the average personal expenditure for delivery in a public hospital is around Rs 1,200, covering travel, food, and miscellaneous costs. For private hospitals, the figure is close to Rs 67,000.
To encourage people to seek more child deliveries in government hospitals, the state has earmarked Rs 560 crore for the “Thai Maaman Thanga Mothiram Thittam.” Under the scheme, every newborn delivered in a govt hospital will be entitled to a one-gram gold ring. A separate programme, “Thai Care,” will provide funds for maternity support centres across the state, including food, medical care, and regular checkups around the time of delivery. The initiative has secured approval for a budget of Rs 23 crore.
