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Union Budget 2026: Mental health takes centre stage, Nirmal Sitharaman announces NIMHANS 2.0

Mental health moves to the heart of Budget 2026 as the Centre announces NIMHANS 2.0 for North India, upgrades key institutes, and flags growing concerns over youth mental well-being and digital addiction.

By Pritha Chakraborty, Shrey Banerjee

Feb 01, 2026 13:54 IST

Today at the Union Budget 2026, Mental health emerged as a key focus area as Union Finance Minister Nirmala Sitharaman announced the setting up of a second campus for the National Institute of Mental Health and Neuro Sciences, or NIMHANS 2.0. The initiative proposes the setting up of a new campus in North India to fill the long-standing regional imbalance in the availability of specialised mental health care services.

NIMHANS 2.0 to address regional gaps

Speaking at the Union Budget 2026, Sitharaman said that the decision to set up another NIMHANS campus has been driven by the lack of quality mental health institutions in the northern states of the country. The new campus is likely to increase access to mental health care, training, and research in the field of neuroscience, which has been under increasing strain in recent years.

Alongside the new campus, the government has announced improvements to the existing National Mental Health Institutes in Ranchi and Tezpur.

Also Read | Budget 2026 proposes SHE retail outlets to boost women-led businesses

Economic Survey flags rising mental health concerns

The Budget’s emphasis on mental health is in line with the Economic Survey 2026’s takeaways, which were released earlier this week. The Economic Survey points out mental health as a ā€œserious public health concern,ā€ particularly among the young.

According to the Survey, there is a high prevalence of social media and digital addiction among those aged 15-24 years. Citing various studies, it points out an increase in anxiety, depression, low self-esteem, and stress related to cyberbullying. It also points out an increase in screen time among children and adolescents, and its impact on academic performance, productivity, and sleep, along with a progressive decline in social relationships.

Also Read | Dankuni–Surat corridor proposed in Budget 2026, plan for seven high-speed rail links

About NIMHANS

The National Institute of Mental Health and Neuro Sciences (NIMHANS) in Bengaluru is the most prominent institution in India for mental health training and neuroscience studies. Its history dates back to 1847 as the Bangalore Lunatic Asylum, which was renamed the Government Mental Hospital in 1925.

In 1974, the organisation transformed into its present avatar as NIMHANS, falling under the aegis of the Ministry of Health and Family Welfare. Since then, it has remained at the cutting edge of mental health policy, clinical practice, and training and research in the country.

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