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The Union Budget 2023-24 has announced an allocation of ₹89,155 crore for the Ministry of Health, which is 3.43% higher than its FY23 outlay of ₹86,200.65 crore. 

Of the ₹89,155 crore outlay, ₹86,175 crore has been earmarked for the Department of Health and Family Welfare and ₹2,980 crore for the Department of Health Research. The Indian Council of Medical Research falls under the Department of Health Research. 

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As compared to FY22-23 when ₹3,200 crore was allocated to the Department of Health Research, the allocation has been slashed. There is a 6.87% decrease in the allocation this year, Budget documents note. The allocation has decreased due to lower utilisation of funds. In FY 21-22, only ₹2,690.61 crore was utilised. 

Pradhan Mantri Jan Arogya Yojana (PM-JAY) which provides cashless health insurance of up to ₹5 lakh per family has been allocated ₹7,200 crore in FY 23-24, higher than last year’s ₹6,412 crore. However, utilisation of funds under the scheme has been low with only ₹3,115 crore being used in FY 21-22. PM-JAY has seen up to 4.3 crore hospital admissions as of January 4, with less than 50% of the originally targeted 50 crore beneficiaries registered under the scheme. 

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