Bhubaneswar, 22/02/2025: The Odisha government has unveiled a robust healthcare budget for the financial year 2025–26, reaffirming its commitment to the ‘Sustha Odisha: Health for All’ vision. With a proposed allocation of ₹23,635 crore for public healthcare, the state has increased its spending by 11.5% compared to the previous year’s outlay of ₹21,200 crore. The enhanced budget underlines the government’s focus on strengthening healthcare infrastructure, expanding medical education, and ensuring equitable access to quality medical services for all citizens, particularly those in remote and underserved regions.
Among the key highlights of the healthcare budget is the allocation of ₹4,479 crore for the Gopabandhu Jana Arogya Yojana (GJAY), which operates in conjunction with the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). Together, these schemes ensure affordable and accessible healthcare at nearly 29,000 empaneled hospitals across India. The expanded coverage under these initiatives reflects the state’s goal of providing financial protection to families from the burden of rising medical expenses.
Chief Minister Mohan Charan Majhi announced the creation of a dedicated ₹200 crore corpus fund for the establishment of new medical colleges and healthcare institutions. This initiative is aimed at bridging regional disparities in medical education and healthcare delivery. The recruitment process for over 5,000 doctors has already begun to address staffing shortages in government hospitals, including those in rural and tribal regions. Additionally, proposals for setting up new medical colleges in several districts, including Bhadrak, are currently under the consideration of a high-level committee, which is expected to submit its recommendations soon.
In addition to expanding medical education, the state has made significant financial provisions to strengthen healthcare delivery systems. A sum of ₹3,881 crore has been earmarked under the Mukhya Mantri Swasthya Seva Mission for health infrastructure development, while ₹2,091 crore will go toward the state’s contribution to the National Health Mission (NHM). The Niramaya scheme, which provides free essential drugs to patients, has received ₹940 crore, ensuring uninterrupted medicine supply across public health facilities.
To promote hospital hygiene and sanitation, ₹997 crore has been allocated under the Nirmal scheme, and ₹229 crore has been set aside for the Nidan scheme, which offers free diagnostic services. Further, ₹222 crore has been dedicated to emergency ambulance services to enhance medical response, and ₹211 crore has been earmarked for the state’s comprehensive cancer care program. The government has also allocated ₹364 crore for effective biomedical waste management to ensure environmental safety and compliance with healthcare standards.
Other notable allocations include ₹100 crore each for the Ayushman Bharat Digital Mission and for constructing drug warehouses in district hospitals and medical colleges, ensuring better storage and distribution of medicines. The Arna Hospital scheme, aimed at establishing new medical and dental colleges in a phased manner, has been allocated ₹420 crore. To extend healthcare access to rural populations, the government has proposed ₹500 crore to ensure every gram panchayat is covered under the Ayushman Arogya Mandir initiative.
Additionally, the newly introduced Swasthya Sahaya scheme, with a budget of ₹270 crore, will focus on combating communicable and non-communicable diseases, strengthening logistics, training healthcare workers, and improving research and diagnostic facilities. This includes enhancing Outpatient Department (OPD) services, establishing public health laboratories, and developing advanced stem cell labs.
With these strategic allocations, Odisha’s 2025–26 health budget reflects a comprehensive and forward-looking approach to public health. It not only prioritizes immediate healthcare needs but also builds a strong foundation for future medical infrastructure, research, and education bringing the state a step closer to achieving universal health coverage under the vision of ‘Sustha Odisha: Health for All.’
