Union Budget in Mental Health (2025-26): Key Initiatives & Findings

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Written By Simran Amarnani

The Union Budget plays a crucial role in solving the existing mental health issues in India. It provides funds for implementing research, mental health services, and training and discusses pre-budget surveys to make it more viable across India. Looking into the Union Budget in Mental Health 2025-26 passed on Feb 1, significant changes have been made to the Ministry of Family Welfare and Health.

With a focus on daycare cancer centers and exemptions for life-saving medications, the budget allotted approximately Rs 1 lakh crore for the Ministry of Health and Family Welfare, indicating a slight increase over the previous year. It also emphasized medical tourism, health infrastructure, and continued attention to mental health and wellbeing.

Mental health has always been seen as a silent crisis in India, becoming a significant cause of increasing suicides, depression among teenagers, and high-stress levels in the workplace. Overall, policymakers have found a poor status of mental health, ultimately making it an essential element of the entire healthcare system to ensure it receives the same level of attention as physical health.

Union Budget in Mental Health For 2025-26: Key Developments

India’s Union Budget 2025–2026 strongly focuses on mental health. The Ministry of Health and Family Welfare (MOH&FW) received a considerable allocation of ₹99,858.56 crore, demonstrating the government’s awareness of health as a vital aspect of national development.

This investment shows that mental health is a priority, which might result in more programs, a more robust mental health workforce, and more integration of mental health services into primary care, all of which would improve the state of mental health in the country. Let’s discuss some of the significant measures taken by Union Budget in detail:

  • National Tele Mental Health Programme (Manas): Through 24-hour telemental health counseling services as a digital component of the National Mental Health Programme (NMHP), this scheme aims to provide all Indian States and Union Territories (UTs) with guaranteed access to equitable, affordable, and high-quality mental health care.
  • National Institute of Mental Health and Neuro-Sciences, Bengaluru: provides services, instruction, and research in neuroscience and mental health. The Institute is a recognized university that offers medical and paramedical degrees and diploma programs.
  • Lokpriya Gopinath Bordoloi Regional Institute of Mental Health, Tezpur: is a top tertiary psychiatric care facility in the North East. The Institute serves patients from all around the North Eastern Region. In addition to providing patient treatment, the Institute has increased the scope of its research activities.
Union Budget in Mental Health Images

What Do Mental Health Experts Have To Suggest?

The Union Budget’s health initiative includes higher funding for mental health services, more professional therapist training, and a greater emphasis on research. To assure that everyone has fair access to mental health treatments, this also focuses on reaching out to underprivileged populations and suggests ways to end the treatment gap. Although the major strategies have been promoted, critics suggest a significant neglect of the mental health budget compared to last year. 

Healthcare experts suggest a need for higher efforts in mental health, including early intervention techniques and improved insurance coverage, to create a more inclusive framework for mental healthcare.

Here are some reactions of mental health professionals based on this year’s budget:

-Rajat Goel, Co-Founder, Emoneeds

“For mental health startups, the government’s move to expand medical education by increasing seats is a welcome push. Additionally, the introduction of credit guarantee cover and the new Fund of Funds is timely, significantly, as startup investments have declined, leaving many budding ventures needing a lifeline.

However, we recall the launch of the mental health helpline in the COVID-19 budget—and little action beyond that. There remains a critical need for expanded insurance coverage for mental health and related illnesses to address the root causes.”

-Tarun Gupta, Co-Founder, LISSUN

“We appreciate the emphasis on creating cancer centers, as this marks a broader push towards health equity. However, as we look ahead, further targeted initiatives such as the integration of mental health into primary healthcare, insurance coverage for mental health, and investments in early intervention programs for neurodevelopmental disorders must remain priorities to revolutionize the mental health framework truly.”

-Dr Jyoti Kapoor, Founder & Director, Manasthali Wellness

“Establishing an AI Centre of Excellence for Healthcare will revolutionize patient care, enhancing diagnosis and treatment through cutting-edge technology. This will also extend to mental health, where AI can help in early detection, personalized care plans, and more efficient management of mental health conditions.

Expanding broadband access for telemedicine consultations in rural and underserved villages will bridge the healthcare divide, including mental health support. Telemedicine has already proven to be an invaluable tool for providing mental health care in remote areas, and this expansion will ensure that no one is left behind in accessing the support they deserve.”

The State of Mental Health In India

Mental health in India is complex and requires urgent attention in terms of reducing stigma, reaching marginalized populations, enhancing quality services, and, most importantly, making people aware. 

The government has taken various measures in India to address these issues, like National Mental Health Programmes (NAHP), Tele-MANAS, Ayushman Bharat Health and Wellness Centres, and Kiran Helpline for providing 24/7 mental health counseling and support. 

Although previous research suggests, certain areas still require higher officials’ attention. Here are some of them:

  • Despite studies showing women have higher rates of anxiety and sadness, almost 73,900 more males than women died by suicide in 2021, according to the National Crime Records Bureau.
  • Over 80% of Indians lack access to mental health care, according to data from the National Institute of Mental Health and Neuro-Sciences.
  • 10.6% of Indian people had a mental disorder, according to the National Mental Health Survey (NMHS) 2015–16, while the treatment gap for various disorders varied from 70% to 92%.
  • According to the 2016 National Mental Health Survey of India, the prevalence of psychological illness among teenagers between the ages of 13 and 17 was 7.3%.
  • According to WHO estimates, India has 2443 disability-adjusted life years (DALYs) per 100,000 people due to mental health issues and 21.1 age-adjusted suicides per 100,000 people.

Final Words

In conclusion, the Union Budget 2025-26 sets a positive impact by taking health initiatives, especially prioritizing mental health. With continuous funding from the National Tele Mental Health Programme, we hope mental health will become easily accessible to many people, particularly in remote areas. Promoting mental health literacy and using AI and other technical advancements can make mental health services easier and more resourceful.

About Simran Amarnani

Hi there! I'm Simran, a dedicated content writer and aspiring psychologist. I'm seeking opportunities that blend my creative storytelling with my analytical mind. My goal is to craft impactful content while building a fulfilling career in mental health. When I'm not writing, you'll likely find me lost in a book, volunteering with children, or watching crime thrillers!

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