Budget 2026 Announces Second National Mental Health Institute

The Union Budget 2026-27 has announced the establishment of India’s second national mental health institute and a major expansion of trauma care services, signalling a renewed policy focus on addressing long-standing gaps in psychiatric and emergency healthcare. Finance Minister Nirmala Sitharaman said the measures aim to support vulnerable populations facing health shocks, economic stress and social disruption.

Second National Mental Health Institute Proposed

A central announcement in the Budget is the creation of NIMHANS-2, a second National Institute of Mental Health and Neuro Sciences. At present, the National Institute of Mental Health and Neuro Sciences in Bengaluru serves as the country’s apex centre for mental health education, clinical care and neuroscience research. Sitharaman noted that there is currently no national mental health institute in north India, forcing patients to travel long distances for specialised treatment and training-linked care.

Upgradation of Existing Mental Health Institutions

Alongside the new institute, the Budget proposes upgrading existing national mental health institutes in Ranchi and Tezpur as regional apex centres. These upgrades are expected to strengthen decentralised access to psychiatric services, research and human resource development, helping bridge regional disparities in mental healthcare infrastructure.

Expansion of Emergency and Trauma Care

Linking mental health with emergency medical response, the Budget announced a 50 per cent expansion in emergency and trauma care capacity at district hospitals. Emergency and Trauma Care Centres will be established to address the financial and psychological impact of accidents, disasters and violence. Sitharaman said such emergencies often expose poor and vulnerable families to sudden and high out-of-pocket expenditure, compounding long-term distress.

Important Facts for Exams

• Budget 2026 proposes NIMHANS-2 as India’s second national mental health institute.
• No national mental health institute currently exists in north India.
• Trauma care capacity in district hospitals to be expanded by 50 per cent.
• Institutes in Ranchi and Tezpur to be upgraded as regional apex centres.

Mental Health Linked to Wider Vulnerability Concerns

Mental health was presented as part of a broader strategy to address structural vulnerability. The Budget highlighted support for persons with disabilities through livelihoods and assistive devices, and measures to strengthen resilience among small and marginal farmers. The Economic Survey 2025-26 flagged mental health as a major public health challenge, citing rising anxiety, depression and stress among young people, linked to social media addiction, cyberbullying and excessive screen time.