The much awaited PC budget kicked off with the Finance Minister assuring all the different ministries that he had provided enough funds to all and it was up to them to use the funds properly. He reiterated that the government was hell-bent on providing ‘Health for All’ or ‘Universal Health Coverage’ and promised Rs 37,330 crore, an increase from Rs 30,702 last year, for the health ministry to achieve this. Here are some more allocations that will affect the healthcare sector:
- Rs 37,330 crore to the Ministry of Health and Family Welfare
- A proposal to create a National Health Mission which will have the NRHM and the proposed NUHM under its jurisdiction. The NHM will be given Rs 21,200 crore for this purpose
- To improve medical education, the FM proposed Rs 4,721 crore
- To improve the healthcare of the elderly, regional geriatric centres to be set up and Rs 150 crore is being allocated for this
- AYUSH centres to be mainstreamed and Rs 169 crore allocated for the same
- The newly launched AIIMS-like institutions started their academic years in September 2012, and hospitals attached to the mentioned colleges will be functional in the 2013-14 academic year, Rs 1,670 crore for them
- To alleviate child malnutrition, Rs 300 crore has been allocated to target 100 problem districts and this scheme will cover 200 districts by next year
- The Ministry of Women and Child Development asked to figure out a better plan to improve the condition of women in the country
- The FM also noted the growing problems faced by women in the country and allocated Rs 97,000 crore for women’s development
- Also, allocation of Rs 76,000 crore to the child budget to improve the healthcare and education facilities of children
- To make insurance more accessible to Below-Poverty Line families the FM asked for the various ministries like the Health and Family Welfare and Ministry to Finance to create a central, all-inclusive insurance policy which would help create a comprehensive social security package.
- The government refused to reduce the duty levied on the import of medical equipment which was one of the more vehement demands made by various stakeholders of the healthcare industry.
- The FM added with a hint of humour that tobacco, the Government’s favourite taxable product would attract a Special Excise Duty (SED) of 18%. This would apply to all tobacco products like cigarettes, cigars, cheerots, etc.
Comment: Till now the Budget panned out as normal for the healthcare sector. Industry demands to give the healthcare sector ‘infrastructure status’ was always unlikely. The NHM to combine the National Rural Health Mission and the National Urban Health Mission seems like a good idea but more centralisation could make it harder for the system to work. The increase from Rs 302,702 to Rs 37,330 to the Ministry of Health and Welfare is a staggering increase of 21%. Also the government has increased the allocations to medical institutions Rs 4721 crore. The AIIMS like institutions also got Rs 1670 crore and all six institutes will have functional hospitals by next year. The proposal to create a comprehensive social security package is also heartening.
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