The Andhra Pradesh state government has presented its Budget for the 2026-2027 fiscal year, with a notable increase in the health sector's allocation. Health Minister Satya Kumar Yadav announced that the total outlay for health has risen to ₹19,306 crore, marking a 9.5% increase from the previous year. This enhanced funding is intended to bolster healthcare infrastructure and services across the state. However, public health advocates, such as the Praja Arogya Vedika, are pressing for more substantial budgetary hikes, citing persistent gaps in primary care, human resources, and rural infrastructure.

Budgetary Allocations and Strategic Focus
The Andhra Pradesh Budget for 2026-2027 outlines specific allocations within the health sector:

Medical Education: ₹9,380 crore
Health and Family Welfare: ₹5,352 crore
Public Health: ₹2,582 crore
Directorate of Secondary Health: ₹1,549 crore
AYUSH: ₹385.25 crore
These funds are earmarked for developing critical care units, village health clinics, and public health laboratories. A significant increase was also observed in the allocation for the Prime Minister Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), which saw an 838% increase over the revised estimate, reaching ₹838 crore.
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Critiques and Calls for Deeper Investment
Despite the increased allocation, the Praja Arogya Vedika has expressed concerns that the current funding is insufficient. Their observations include:

An over-reliance on privatisation and public-private partnership (PPP) models in healthcare.
Gaps in primary and preventive healthcare services.
A shortage of healthcare human resources.
Weak infrastructure in rural and tribal areas.
Insufficient measures to address malnutrition and anaemia, particularly among women and children.
The organization advocates for a stronger emphasis on publicly funded, equitable healthcare, urging the government to prioritize these areas over models focused on medical tourism or high-end PPPs. They have also called for improved emergency services and the clearing of pending payments under the NTR Vaidya Seva scheme.
Comparative Health Outlays
While Andhra Pradesh's health budget has seen a rise, other states are also reporting significant increases in their health sector allocations:
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| State | Total Health Outlay | Percentage of Total Budget (Approx.) | Key Initiatives Mentioned |
|---|---|---|---|
| Andhra Pradesh | ₹19,306 crore (2026-27) | Data not explicitly provided | Critical care blocks, village health clinics, public health labs, PM-ABHIM |
| Uttar Pradesh | ₹46,728.48 crore (2026-27) | 6.1% | Strengthening medical infrastructure, reducing out-of-pocket expenditure |
| Uttar Pradesh | ₹37,956 crore (2026-27) | 6% | Medical, Health and Family Welfare; ₹14,997 crore for Medical Education, ₹8,641 crore for NRHM |
Expert Perspectives
Health Minister Satya Kumar Yadav viewed the Budget positively, stating that the increased allocation would strengthen healthcare infrastructure, improve service delivery, and support welfare initiatives, aligning with the state's vision of "Swarna Andhra 2047."
The Praja Arogya Vedika expressed that increased reliance on PPP models could exacerbate existing inequalities in healthcare access. They urged a focus on publicly funded and equitable healthcare.
Conclusion and Future Implications
The 2026-2027 Andhra Pradesh Budget demonstrates a clear intent to increase financial support for the health sector. The rise in outlay, particularly for PM-ABHIM, signals a commitment to improving healthcare infrastructure. However, persistent concerns from public health groups regarding the adequacy of funding, the balance between public and private healthcare provision, and the need to address fundamental issues like primary care access and human resource shortages suggest ongoing challenges. The government's next steps in implementing these allocations and addressing the advocacy groups' points will be crucial in determining the actual impact on public health outcomes. The focus on infrastructure development through critical care blocks and health laboratories is a tangible step, but whether it sufficiently addresses the broader spectrum of public health needs remains a point of contention.
Sources Used:
The Hindu: Article 1 (https://www.thehindu.com/news/national/andhra-pradesh/health-outlay-rises-95-to-19306-crore-in-budget-satya-kumar-yadav/article70632157.ece) - Reports on the increased health outlay in Andhra Pradesh's budget as announced by Health Minister Satya Kumar Yadav.
The Hindu: Article 2 (https://www.thehindu.com/news/national/andhra-pradesh/praja-arogya-vedika-seeks-higher-health-outlay-in-2026-27-budget/article70620578.ece) - Details the concerns and demands of Praja Arogya Vedika regarding the health budget and healthcare models.
Deccan Chronicle: Article 3 (https://www.deccanchronicle.com/southern-states/andhra-pradesh/praja-arogya-vedika-urges-substantial-budgetary-hike-1937106) - Further elaborates on Praja Arogya Vedika's opposition to PPP models and their call for strengthening public healthcare.
Business-Standard: Article 4 (https://www.business-standard.com/india-news/up-budget-rises-to-8-33-trillion-health-outlay-hits-record-eco-survey-1260210000211.html) - Provides information on Uttar Pradesh's health budget and its overall budget size.
The Hindu: Article 11 (https://www.thehindu.com/business/budget/budget-2026-reflects-clarity-of-thought-compassion-conviction-andhra-health-minister-satya-kumar-yadav/article70577624.ece) - Features a statement from Andhra Health Minister Satya Kumar Yadav on the Union Budget 2026, reflecting a broader positive sentiment.
The Hindu: Article 13 (https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-state-budget-live-updates-february-14-2026/article70631317.ece) - Covers the presentation of the Andhra Pradesh State Budget for 2026-27, outlining its total outlay.
The Indian Express: Article 9 (https://www.indianexpress.com/article/cities/lucknow/up-govt-presents-rs-912-lakh-crore-budget-big-push-for-roads-jobs-healthcare-what-it-means-for-you-10526321/) - Details the UP government's budget, including significant allocations for healthcare and medical education.
Newkerala.com: Article 12 (https://www.newkerala.com/news/a/yogi-govt-presents-rs-912-lakh-crore-up-410.htm) - Summarizes the Uttar Pradesh budget, highlighting allocations for health, medical education, and rural health missions.
PRS India: Article 5 (https://prsindia.org/budgets/parliament/demand-for-grants-2025-26-analysis-health-and-family-welfare) - Provides an analysis of the Demand for Grants for Health and Family Welfare, relevant for understanding national-level health spending patterns.
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