Fiscal Analysis: Union Budget 2026 Fails to Curb Medical Inflation and Out-of-Pocket Healthcare Expenditure

Intelligence assessment indicates that the Union Budget 2026 presents limited substantive measures to address escalating out-of-pocket healthcare costs and persistent medical inflation, according to expert analysis. While the exemption of 17 critical cancer medications from basic customs duty represents a nominal fiscal concession, historical precedent suggests minimal downstream consumer benefit. Previous instances of similar duty waivers have demonstrated inadequate mechanisms to ensure pharmaceutical companies transfer cost savings to end-users, thereby diluting potential price relief. The budgetary framework lacks robust regulatory enforcement or price control provisions to guarantee that tariff reductions translate into tangible affordability for patients. This oversight perpetuates systemic financial burdens on households, particularly amid rising treatment expenses and inflationary pressures in the healthcare sector. The absence of comprehensive strategies to monitor and mandate price transmission underscores a significant policy gap, potentially undermining public health outcomes and economic stability. Experts emphasize that without structural interventions to enhance price transparency and accountability, isolated fiscal adjustments remain insufficient to mitigate the growing disparity between healthcare costs and household financial resilience.