₹10 lakh cashless health cover for 2.72 cr people, major push for hospitals and medical infrastructure

Placing emphasis on “health is the first happiness”, the Gujarat government has made a significant push for the healthcare sector in the 2026-27 Budget. In line with Prime Minister Narendra Modi’s vision of a ‘Swasth Bharat’, the state has announced wide-ranging measures aimed at strengthening public health infrastructure and reducing the financial burden of medical treatment on families.

The biggest announcement is the expansion of benefits under the Pradhan Mantri Jan Arogya Yojana (PM-JAY)- Mukhyamantri Amrutam (MAA Yojana). Around 2.72 crore people in Gujarat will now receive cashless treatment of up to ₹10 lakh per year. To ensure the smooth implementation of the scheme, the government has allocated ₹3,472 crore. The move is expected to act as a protective shield for poor and middle-class families against high medical expenses.

The budget also made substantial provisions for strengthening government hospitals and medical education. An amount of ₹1,851 crore has been earmarked for medical hospitals run by the Gujarat Medical Education and Research Society (GMERS). Additionally, ₹502 crore has been allocated under the Best Gujarat Project to strengthen health services and address non-communicable diseases and other public health challenges.

A further ₹500 crore will be spent on constructing multi-specialty hospitals and cancer, cardiac-neuro, and uro-nephro super-specialty hospitals in Ahmedabad and Surat. Another ₹200 crore has been set aside for purchasing new medical equipment for government medical colleges and affiliated hospitals.

Key state-run health institutions have also received major allocations, with ₹186 crore allocated for the Institute of Kidney Disease and Research Centre and its satellite centres in Surat, Sola-Ahmedabad, Gandhinagar and Bhavnagar. The UN Mehta Institute of Cardiology and Research Centre has been allotted ₹167 crore for its main campus and satellite centres in the state. Similarly, ₹153 crore has been allocated to the Gujarat Cancer and Research Institute and its satellite facilities in several cities.

Infrastructure expansion is another major focus of the budget, with ₹90 crore earmarked for building a 1,000-bed hospital at Pandit Deendayal Upadhyay Government Hospital. The government has also allocated ₹60 crore to establish closed-system ICUs in six government civil hospitals. 

Funds have been set aside for staff quarters at New Civil Hospital in Surat, hostel construction at Government Medical College in Vadodara, and the development of super-specialty hostels and medical facilities in Ahmedabad and Jamnagar. Investments have also been made for district-level early intervention centres and a Food and Drug Laboratory in Surat.

The budget further prioritises community and preventive healthcare by allocating ₹30 crore for providing ready-to-eat nutritious snacks to TB patients. Ten community health centres will be set up in districts including Valsad, Dang, Narmada, Chhota Udepur and Kutch with an allocation of ₹28 crore. The government has also set aside ₹22 crore for the Home-Based Care for Young Child scheme and ₹16 crore for purchasing 250 ‘Khilkhilat’ vans to strengthen maternal and child welfare services. Additionally, a plan has been announced to issue health cards to children aged 0 to 18 years under the School Health National Child Health Programme.

Overall, the Gujarat Budget 2026-27 outlines a comprehensive strategy to enhance healthcare access, expand medical infrastructure and provide financial protection to millions of families, ensuring that quality treatment becomes more accessible.