Today, October 10, is recognised as World Mental Health Day.
The Economic Survey for FY 2024-25, for the first time acknowledged the state of mental health in the country. It rightfully recognised mental health as not just a health but an economic issue – one that impacts productivity, economic mobility and health costs. The survey also emphasised a “positive policy momentum” providing tailwinds for action.
A day later, the finance minister announced the Union Budget 2024-25. In our annual Union Budget for Mental Health FY 2024-25 brief, we examined the various provisions for mental health in the budget to determine if the rhetoric was backed by action.
The budget for mental health is allocated by the Ministry of Health and Family Welfare (MoHFW) and Ministry of Social Justice and Empowerment (MoSJE). Over the last three years, this budget has remained stagnant, despite the growing concern around mental health issues in India, where 197 million people live with mental health conditions.
| Budget Estimates | |||
| Budget Head | 2022-23 | 2023-24 | 2024-25 |
| Total Government of India Budget (₹ in crores) | 39,44,909 | 45,03,097 | 48,20,512 |
| Total MoHFW budget (₹ in crores) | 86,201 | 89,155 | 90,659 |
| MoHFW budget as % of total budget | ~2.2% | ~2.0% | ~1.9% |
| Total MoSJE budget (₹ in crores) | 13,135 | 14,072 | 14,225 |
| MoSJE budget as % of total budget | ~0.33% | ~0.31% | ~0.30% |
| Direct mental health allocation under MoHFW and MoSJE (₹ in crores)
(NIMHANS, LGB Regional Institute of Mental Health, TELE Manas and NAPDDR)* |
991 | 1,230 | 1,314
|
| Indirect mental health allocation under MoSJE (₹ in crores) | 365 | 280 | 300
|
| Total budget for mental health (Direct + Indirect) (₹ in crores) | 1,156 | 1,510 | 1,614 |
| Total mental health budget as % of MoHFW and MoSJE budget | ~1.16% | ~1.46% | ~2% |
Institutions get funding, programs lag behind
In this years’ budget, a substantial 91% of direct mental health spending was allocated to two centrally funded institutions, in continuation of a long standing trend. The National Institute of Mental Health and Neurosciences (NIMHANS) received a substantial Rs 850 crore, a rise of 18% from the previous year and double the amount (Rs 434 crore) it received in FY 2020-21.
On the other hand, the National Tele-Mental Health Programme’s (TELE Manas’) budgets were slashed by 33%, from Rs 134 crore in FY 2023-24 to Rs 90 crore this year. This reduction is concerning, given its potential to provide scalable, accessible mental health services across the country. In over a year since its launch, TELE Manas handled over 12 lakh calls, demonstrating a clear demand for services. The decline in funding is attributed to a shift in financial responsibility to the states after initial capital costs. This move risks undermining the program’s impact.
Source: Budget documents.
Similarly, the National Mental Health Programme (NMHP), a flagship initiative is facing budgetary obscurity. Since FY 2022-23, NMHP’s tertiary level funding has been subsumed under the broader Tertiary Care Programme (TCP). Although the budget for TCP has increased in FY 2024-25, it remains unclear how much is allocated for NMHP due to a lack of disaggregated data. For the District Mental Health Programme, approved for 767 districts, central-level funding cannot be traced in the budget.
While the Mental Health Care Act (MHCA), 2017 highlights the need to transition from institutional services to community-based mental health care and rehabilitation, the budgetary allocations do not reflect this.
The National Action Plan for Drug Demand Reduction (NAPDDR), launched by MoSJE in 2018, aims to treat, rehabilitate and socially reintegrate individuals with substance use conditions.
For FY 2024-25, the program’s budget is Rs 314 crore, a slight increase from the previous year. The Deendayal Disabled Rehabilitation Scheme (DDRS) and the Scheme for Implementation of Persons with Disabilities Act (SIPDA) under MoSJE play a vital role in supporting rehabilitation and inclusion for people with mental health conditions.
The DDRS, which funds non-profits for psychosocial rehabilitation, saw a 28% budget increase to Rs 165 crore, while SIPDA faced a 10% cut. However, overall program funding has stagnated in recent years.
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Factors affecting mental health
Mental health cannot be addressed in isolation as it is deeply intertwined with socio-economic factors like poverty, unemployment, and food security. The link between financial distress and mental health is stark, with 7% of all suicides in 2022 attributed to poverty, unemployment, and debt.
The Economic Survey acknowledges that socio-economic stressors exacerbate mental health conditions. To combat poverty, we need strong social protection and livelihood security programs. Unfortunately, this year’s budget has seen cuts to the Pradhan Mantri Garib Kalyan Anna Yojana, and the share of spend on Mahatma Gandhi National Rural Employment Guarantee scheme (MGNREGA) has fallen from 2.1% of the total budget in FY 2018-19 to only 1.3% in FY 2023-24. This, despite rising unemployment and income inequality in the country. Such budget cuts threaten the essential protection systems needed to enhance mental health outcomes.
The disconnect between allocation and action
Even where funds are allocated, poor utilisation hampers progress. Consider the case of NAPDDR. While it has received higher budgetary allocations – up from Rs 280 crore in FY23-24 to Rs 314 crore in FY 2024-25 – the actual utilisation of these funds has been consistently low. For instance, in FY 2022-23, only 48% of the allocated budget was spent, reflecting inefficiencies that hinder implementation.
This trend is visible across many mental health initiatives. In FY 2022-23, MoSJE used only 66.3% of its budget, highlighting the gap between intent and execution. Without improving budget utilisation, even increased allocations will not translate into meaningful progress.
The way forward
The inclusion of mental health in the Economic Survey is a promising step, but it must be backed by concrete policy action and increased funding.
While the survey has put mental health on the national agenda, the Union Budget 2024-25 does not reflect the urgency required to tackle the crisis. Budgetary allocations for community-based care remain inadequate, and the broader socio-economic issues that drive poor mental health outcomes need more attention and funding. For India to make meaningful progress in mental health outcomes, the government must commit to providing accessible, affordable, quality and rights-based services and schemes.
*NIMHANS budget includes funds for psychiatry and neurology with no further information available.
Sayali Mahashur is a research associate and Tanya Nicole Fernandes and Sneha Kaushal are research fellows at the Centre for Mental Health Law & Policy, Indian Law Society, Pune.