NATHEALTH emphasizes the inadequacy of India’s public healthcare spending, currently at 1.6-1.8% of GDP, stating that these allocations are insufficient to address the substantial healthcare challenges faced by the nation.
The government has been urged to increase the health budget to 2.5% of GDP by NATHEALTH, the Healthcare Federation of India. Furthermore, NATHEALTH stressed the significance of reorganizing the healthcare GST framework in its pre-Budget recommendations. The federation stressed the need for revolutionary policies that prioritize building healthcare infrastructure and making calculated investments to alleviate supply-side limitations in the healthcare industry. This demand for more funding and structural adjustments is in line with the objective of improving the nation’s healthcare system as a whole.
India’s public healthcare spending is relatively low, accounting for only 1.6% to 1.8% of GDP, according to NATHEALTH, the Healthcare Federation of India. According to the federation, this amount of funding is insufficient to deal with the serious healthcare issues the nation faces. To meet population demands and effectively address current healthcare issues, the statement essentially emphasizes the need for increased financial commitment to the healthcare sector.
In order to improve social insurance programs, advance healthcare reforms, upgrade infrastructure, and accelerate the delivery of digital health services across the country, NATHEALTH advises raising the budgetary allotment for healthcare to 2.5% of GDP. The federation also emphasizes the need to rationalize the Goods and Services Tax (GST) in the healthcare industry, citing issues with the current GST structure’s impact on the healthcare credit chain. In order to better support India’s healthcare sector, this dual approach seeks to address financial shortcomings and streamline the taxation system.
NATHEALTH draws attention to a significant problem facing the healthcare sector, namely problems with indirect taxes and the lack of input credit for providers. The federation strongly advises that the Finance Bill include a reform agenda with the express goal of reorganizing the Goods and Services Tax (GST) system for healthcare. Ashutosh Raghuvanshi, President of NATHEALTH, highlights the criticality and significance of strategic changes in India’s healthcare system. This entails arguing in favor of raising the healthcare budget to 2.5% of GDP, streamlining the GST structure, and fortifying different facets of the healthcare system to satisfy the nation’s changing needs and difficulties.
“To meet the growing demands of our nation, it is crucial to focus on capacity building and training of healthcare professionals,” added Raghuvanshi, who also serves as Fortis Healthcare’s chief executive officer and managing director. These actions are essential for India to have a strong and adaptable healthcare system.”
NA explains that the emphasis for strengthening the value chain should continue to be on enhancing local capacities to provide care to the most remote areas, while also placing a strong emphasis on localization.
