However, stakeholders remain cautious on implementation. | Photo credit: File photo
Although the state government has kept the health allocation at 4% of the total budget at ₹ 17,817 crore, almost similar to last year, this year’s budget has put more emphasis on improving health infrastructure, expanding critical services and strengthening digital health systems.
Chief Minister Siddaramaiah announced a grant of ₹900 crore for the development of infrastructure in the health sector. The budget also allocates ₹45 crore to strengthen trauma care services in all district and taluk hospitals. In a major relief, the government has also proposed free insulin pens for children under 18 with type 1 diabetes.
Revision of the AB-ArK package
In response to a long-standing demand from hospitals, the budget proposed a revision of treatment package rates under Ayushman Bharat – Arogya Karnataka (AB-ArK). The existing medical package rates for 2018 will be updated by adopting the Center’s Health Benefit Package (HBP)-2022 rates. An additional ₹400 crore has been earmarked for this step.
However, stakeholders remain cautious on implementation. According to industry estimates, adoption of the revised package rates would require additional budgetary support of nearly ₹ 1,200 crore. Despite numerous discussions between representatives of private hospitals, the health department and senior officials, the proposal submitted by the Suvarna Arogya Suraksha Trust (SAST) – the nodal agency for the scheme – is pending with the finance department.
Pavan Kumar Patil, member of the Karnataka Private Medical Establishments Act (KPMEA) expert committee on price fixation for government health systems, said, “Since the overall allocation remains largely unchanged, it suggests that there may not be any immediate fiscal action to support the implementation of the revised HBP-2022 packages. The proposal appears to be more of an eyewash.”
However, Harsh Gupta, principal secretary (health), said the revised packages will be implemented by pooling funds from various schemes, including the Yashasvini scheme, the Karnataka Building and Other Construction Workers Welfare Board and the Employees’ State Insurance Corporation. “For beneficiaries who are also covered under Yashasvini and other schemes, available funds will be utilized. This convergence will help ensure better access,” he said.
Home palliative care
The budget also proposes home palliative care services modeled on the system used in Kerala in collaboration with Pallia India.
The state will introduce the Health Staff in stages with the aim of bringing greater transparency and objectivity to the appointment of district hygienists, district doctors and other administrative functions in the health sector.
Published – 06 Mar 2026 20:24 IST
