Union Budget 2026: Mental health has taken centre stage in the finance minister Nirmala Sitharaman's budget speech on February 1.
Emphasising on the need to address mental health issues and the lack of a premier institute in the northern region of the country, Sitharaman announced plans to establish a second or new site of the National Institute of Mental Health and Neuro Sciences (NIMHANS).
Also referred to as 'NIMHANS 2.0', the institute is proposed to be set up in North India and would be a new regional hub for the premier mental health and neuroscience institute that is currently based in Bengaluru.
As per the Union Budget 2026 announcement, the institute setup aims to address the lack of advanced mental health infrastructure in North India and bridge the geographical gap for people who wish to seek help.
What is NIMHANS?
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National Institute of Mental Health and Neuro Sciences (NIMHANS), Bengaluru, is a world-renowned centre of excellence in the area of mental health and neurosciences.
It is spread across an area of 131 acres and combines mental health and neuroscience under one roof. The institute houses nearly 20 specialised clinics, each tailored to provide disease-specific, patient-centric treatment.
The government declared the institute a ‘Deemed University’ in 1994. In 2012, NIMHANS was conferred the status of an ‘Institute of National Importance’ through a separate act of Parliament.
Apart from these announcements, Sitharaman proposed to launch initiatives to strengthen evidence-based research, training, and awareness in traditional medicine.
Previous budget allocation for the health sector:
Under the Union Budget 2025, the Ministry of Health and Family Welfare was allocated Rs 99858.56 crore. The Department of Health and Family Welfare was given Rs 95,957.87 crore and the Department of Health Research was allocated Rs 3,900.69 crore.