Identifying HIV-AIDS and polio as major challenges in the healthcare sector, Finance Minister P Chidambaram proposed to increase the allocation in the 2007-08 Budget for the National Rural Health Mission to Rs 9,947 crore (Rs 99.47 billion) from Rs 8,207 crore (Rs 82.07 billion) in the current fiscal.

Presenting the Budget in Parliament, Chidambaram said the government has brought HIV-AIDS "out of the closet" and promised bold and determined efforts to achieve zero-level growth of the disease.

The government proposed to increase the provision for the AIDS Control Programme to Rs 969 crore (Rs 9.69 billion) in 2007-08.

The National AIDS Control Programme-III (NACP-III), starting in 2007-08, will target high-risk groups in all states.

"More hospitals will provide treatment to prevent transmission of HIV-AIDS from mother to child. The epidemic will be deemed stabilised if the prevalence rate is less than one per cent of the population," Chidambaram said.

The polio eradication programme, he said, has been integrated with the NRHM and Rs 1,290 crore (Rs 12.9 billion) has been allocated with the aim of eradicating the virus from the country.

Major emphasis will be placed on mother and child care and preventing and treating communicable diseases like TB and malaria, he said.

Ayurveda, yoga and naturopathy, unani, siddha and homeopathy systems will be mainstreamed into the health delivery systems at all levels, Chidambarm said.