Health allocations in Budget 2016-17, which show a modest increase in nominal terms, must be viewed against the virtual stagnation of allocations since 2010-11, and the major cuts of 2015-16. Meanwhi le, state governments' investments in health grew steadily. The centre has only prioritised initiatives that stimulate private health sector growth. This approach will have immediate adverse effects on availability and quality of public health services and will cause impoverishment due to healthcare costs, compromising economic growth in the long run.