India’s Mental Health Budget: Why We’re Still Missing the Mark

In response to“Mental Health is on the Agenda—but Never in the Budget” by Godfrey K.

The powerful reflection on the global mental health funding crisis holds true for India as well. While national conversations around mental well-being are gaining visibility, financial commitment remains staggeringly low and alarmingly disconnected from public health realities.

India allocates only 1.3% of its total health budget to mental health. To put that into perspective, that amounts to just ₹40 per person per year (less than $0.50), as per India’s Union Budget 2023–24 analysis by the Centre for Mental Health Law & Policy (CMHLP, Pune). A significant portion of this limited funding still goes to maintaining large psychiatric institutions, with very little directed towards community-based care, early intervention, or school-based mental health programs. Despite mental disorders contributing to nearly 15% of the total disease burden among youth aged 10–24 in India (Lancet Psychiatry, 2020), the mental health system continues to rely heavily on inpatient services and narrowly clinical interventions. These models, often under-resourced and disconnected from communities, sideline innovative, grassroots-led approaches that have shown significant promise in offering accessible, preventive, and culturally sensitive care.

In contrast, India in public and private sector has seen encouraging interventions from tele-counselling initiatives Telemanas in government schools to MHFA-based peer support programs in corporate settings. But these efforts remain underfunded and unsustainable. Without a clear line item for mental health in most state budgets, these models rely heavily on temporary donor funds or CSR, not public financing, etc. If India is to walk the talk on mental health truly, we must analyze what could the budget be:

Current Spending Snapshot (as of 2024):

• India allocates only 1.3% of its total health budget to mental health (National Health Accounts, 2023).

• That’s roughly ₹1,200–₹1,400 crore annually, with most of it spent on large mental hospitals.

• Per capital public mental health expenditure is under ₹10 — drastically below the WHO recommendation of $2 (₹160+) per person annually.

Hoping for big changes when investment is minimal is an unrealistic expectation. While there are numerous challenges on the ground, I’m listing a few actions that, in my view, could significantly contribute to lasting change:

1. Political will and responsive budgeting: Mental health funding must be aligned with the scale of need. Dedicated budget lines and clear accountability are essential.

2. Investing in high-return models like community care: Instead of over-relying on institutional care, we need to fund decentralized, community-based services that are more accessible and cost-effective.

3. Strengthening prevention and public empowerment: Supporting initiatives that promote self-care, mental health literacy, and peer-based support can reduce long-term costs and improve early intervention.

Like Godfrey K. , we ask: If mental health matters, why doesn’t our budget reflect it?

India cannot afford symbolic gestures. Mental health must be treated not as charity, but as infrastructure essential, scalable, and worth investing in to preserve and enhance the human capital.

Let’s push for funding that follows the evidence and honors the needs of our people.

Reference

1. Comprehensive Mental Health Action Plan 2013-2030

2 . Mental Health ATLAS 2020

3. India Budget | Ministry of Finance | Government of India