During Prime Minister Narendra Modi’s tenure, India has seen a significant increase in healthcare allocation and spending. Even before the Covid-19 pandemic, the government had already highlighted healthcare as a priority sector. The Interim Budget for 2024-25 presented by Finance Minister Nirmala Sitharaman further underscores this commitment. The budget allocation for health was raised to ₹90,171 crore, a substantial increase from the ₹79,221 crore allotted in 2023-24.
Several new healthcare measures were introduced in this budget. Notably, a new initiative to promote cervical cancer vaccination for girls aged 9-14 was launched, aiming to reduce this preventable disease. The allocation for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana was increased from ₹7,200 crore to ₹7,500 crore. Additionally, the Unorganised Worker Identification Number (U-WIN) platform was introduced to enhance immunisation management and support ‘Mission Indradhanush.’ Funding for biotechnology research and development was also raised from ₹500 crore to ₹1,100 crore, reflecting the government’s commitment to innovation and improved healthcare infrastructure.
However, despite the positive strides, a Lancet report from April criticized the Indian government’s healthcare spending, stating it is just 1.2% of GDP, one of the lowest among G20 countries. The report highlighted the high out-of-pocket expenditure on healthcare and claimed that flagship initiatives on primary healthcare and universal health coverage have yet to deliver services to those most in need. In response, government sources emphasized ongoing efforts to increase healthcare funding, noting that out-of-pocket expenses as a percentage of total health expenditures have declined and government spending is at an all-time high.
India’s healthcare system faces several challenges, including inadequate infrastructure and unequal access to care. Dr. Giridhar Gyani, co-founder of the Association of Healthcare Providers of India, pointed out that India has less than two beds per 1,000 population, compared to the World Health Organization norm of 3.5 beds. This shortage is even more pronounced in rural areas, where tertiary care facilities are scarce.
Healthcare remains a costly affair for many citizens, with some going into debt or selling assets to access care. Professor Bejon Misra, founder of the Patient Safety and Access Initiative of India Foundation, highlighted the financial burden on the middle class and the poor, emphasizing the need for more comprehensive coverage under schemes like Ayushman Bharat. He suggested expanding the scheme to include the lower middle class and self-employed individuals.
Looking ahead, there are high expectations for the upcoming Union Budget to further increase healthcare expenditure. Dr. Gyani stressed the importance of increasing the budget allocation, noting that the global average is 9.5% of GDP, while India’s spending is below 2.6%. He also advocated for incentivizing the private sector to set up hospitals in rural areas through public-private partnerships.
Stakeholders have called for various measures to enhance the healthcare sector, including providing incentives for private healthcare providers, reducing taxes on healthcare services and equipment, and eliminating GST on health insurance and medical devices. Gautam Khanna, CEO of P.D. Hinduja Hospital & Medical Research Centre, emphasized the need for depreciation allowances for investments in diagnostic infrastructure and incentives for infrastructure development.
In conclusion, while significant progress has been made in increasing healthcare funding and introducing new initiatives, there is still much to be done to ensure equitable access to quality healthcare for all citizens. The upcoming budget presents an opportunity for the government to further bolster its commitment to healthcare and address the sector’s pressing challenges.
SOURCE:
ECONOMIC TIMES
