COVID-19 highlighted the importance of the domestic pharmaceutical industry. While the Indian pharma industry is among the top-10 in terms of exports, there is heavy reliance on the import of certain essential raw materials. To address this gap, the government has approved multiple incentive schemes and significantly increased the allocation to the Department of Pharmaceuticals in the 2022-23 budget. The COVID-19 pandemic has necessitated that the government divert the funds towards pandemic-critical sectors. The health sector was one such that needed immediate intervention to manage various issues related to the pandemic including but not limited to spending towards infrastructure, resources, personnel, etc. The experience during the pandemic also highlighted the need for the governments to re-strategize their spending on such critical sectors to be able better handle any such future situation. Among the varied requirements that became critical during the pandemic was access to common drugs & medicines used for the treatment of COVID-19. There was a significant increase in demand for different kinds of drugs commonly used in COVID-19 treatment protocol in addition to the need to come up with & manufacture new drugs. In this context, we look at the trends in budget allocation for the Department of Pharmaceuticals (DoP). This department is part of the Ministry of Chemicals & Fertilizers. Fivefold increase in the Budget allocation in 2022-23 compared to 2021-22 The Department of Pharmaceuticals was created on 01 July 2008 as part of the Ministry of Chemicals & Fertilizers. The objective of the department is to focus on the development of the pharmaceutical sector and regulate various issues such as pricing & availability of medicines at affordable prices, research & development, protection of intellectual property rights, international commitments, etc. Trends in recent years indicate an increase in the allocation to the department, which is understandable in wake of the COVID-19 pandemic in the country. However, the trends vary in terms of the initial budget estimates and the actual expenditure over the years. During 2018-19, the actual expenditure was twice the budget estimates. The budget estimates for the year were Rs. 261 crores, while the actual expenditure for the year was Rs. 523 crores. While the budget estimates for 2019-20 were on par with those of the previous year, they were revised to Rs. 562 crores, closer to the actual expenditure incurred in 2018-19. In the pandemic hit 2020-21, the initial budget estimates for the DoP were Rs. 333 crores, which the government revised to Rs. 470.4 crores. However, as per the details provided in the latest budget documents, the actual expenditure for 2020-21was Rs. 456 crores. This is not only slightly lower than the revised estimates but also lower than the actual expenditure for the previous two years. The latest budget also highlights the substantial increase in focus & allocation to the DoP in 2022-23. The revised estimates for 2021-22 were increased to Rs. 823 crores from the earlier budget estimates of Rs. 470 crores. However, a substantial increase was observed in the budget estimates for 2022-23. The budget estimates for 2022-23 for the DoP stand at Rs. 2.24 thousand crores, which is nearly 5 times the budget estimates of 2021-22. Prior to the pandemic, the majority of the Department’s expenditure was towards NIPERs As the overall numbers indicate, there is a major increase in the estimates for 2021-22 & 2022-23. Before we look at the details of the increased allocation, here is a look at the trends in expenditure incurred by the DoP prior to the onset of the pandemic. The budget data indicates that a major portion of the expenditure incurred by the department prior to the pandemic was towards NIPERs (National Institute of Pharmaceutical Education & Research). The first NIPER was setup in Mohali and was given statutory recognition under NIPER Act,1998. A total of 6 more NIPERs were established in 2007-08. The main purpose is to promote quality & excellence in pharmaceutical education & research. Barring 2018-19, there has been a year-on-year increase in the actual expenditure incurred on NIPERs in recent years. During 2020-21, there is a major increase in the actual expenditure compared to 2019-20. The actual expenditure in 2020-21 was Rs. 306.3 crores, while it was only Rs. 160 crores in 2019-20. The budget estimates for 2020-21 were Rs. 184.45 crores, which was revised to Rs. 306.3 crores because of the pandemic. There was also increased allocation towards another Central Sector scheme i.e., Jan Aushadhi Scheme.