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Thiruvananthapuram, July 1, 2025 — Kerala’s public healthcare system is facing a mounting crisis as significant budget cuts and shortages of essential medical equipment disrupt services across the state’s government hospitals and medical colleges. The controversy, which has sparked widespread concern among health professionals and the public, centers on reduced allocations for infrastructure, medicines, and critical care facilities.
Sharp Reductions in Funding
In the current financial year, the Kerala government slashed its allocation for upgrading hospital infrastructure and treatment systems by nearly Rs 147 crore, reducing the budget from Rs 401.24 crore to Rs 254.35 crore. This has forced the suspension of several key projects, including the introduction of advanced facilities such as sports medicine, molecular diagnostic labs, oncology and tertiary care centers, and robotic surgery. Expansion plans for bone marrow transplants, pain and palliative care, and trauma care units have also been delayed.
The overall Health Department budget was similarly affected, with Rs 62.11 crore withdrawn from the original Rs 152.13 crore allocation, leaving just Rs 90.02 crore. Funding for blood banks was halved, severely impacting services at district and general hospitals as well as primary health centers.
Impact on Cancer Care and Medicines
Major cancer treatment centers have seen their budgets slashed: Thiruvananthapuram Regional Cancer Centre’s allocation dropped from Rs 73 crore to Rs 36.5 crore, Malabar Cancer Centre from Rs 26 crore to Rs 14 crore, and Kochi Cancer Research Centre from Rs 14.5 crore to Rs 9.3 crore.
A critical shortage of funds for medicines has emerged as a major challenge. The health department requires over Rs 1,014 crore for medicine procurement this year, but only Rs 356.4 crore was allocated in the 2025-26 budget. As of January 2025, the Kerala Medical Services Corporation reportedly owed Rs 693.76 crore to pharmaceutical companies, raising fears that supply stoppages could worsen medicine shortages in government hospitals.
Political Dispute and Public Outcry
The crisis entered the public spotlight after Dr Haris Chirakkal, Head of Urology at Thiruvananthapuram Medical College Hospital, posted on social media about repeated delays in surgeries due to a lack of basic equipment. His post, which was later deleted at the request of the Directorate of Medical Education, triggered a heated debate and drew attention to the ongoing difficulties faced by healthcare workers and patients.
The opposition United Democratic Front (UDF) has strongly criticized the government, with Leader of the Opposition V D Satheesan alleging that “the health system in Kerala is on ventilator support.” The UDF has announced plans to appoint a commission to study the sector and organize a health conclave.
Government Response
Kerala Finance Minister K N Balagopal has denied any cuts to patient-related health spending, calling such reports “completely baseless.” He stated that for the 2024–25 financial year, Rs 9,667 crore was allocated to the health sector, with actual spending rising to Rs 9,994 crore due to additional authorizations. For the current fiscal year, Rs 10,432 crore has been earmarked, with nearly a quarter already released in the first three months. Balagopal emphasized that treasury restrictions do not apply to health spending and highlighted the creation of new posts and the introduction of modern treatments since 2021.
Disclaimer: This article is based on information reported by Medical Dialogues as of July 1, 2025. Statements and figures reflect the situation as described in the source and may be subject to further updates or official clarifications. Readers are advised to consult official government releases for the latest information.
