Union Budget 2024: Healthcare sector urges government to boost public health spending

The healthcare sector has called for the government to raise public health expenditure above 2.5 percent of the country's gross domestic product (GDP) in the upcoming Budget,  Mint has reported.

The healthcare industry is seeking increased investment to enhance infrastructure and address demand and supply side challenges.

Abhay Soi, president of NATHEALTH and chairman of Max Healthcare Institute, stressed the need for two billion square feet of advanced healthcare facilities.

In its recommendations for the first Budget of Modi 3.0, which will be presented on July 23, the Healthcare Federation of India (NATHEALTH) stressed on the importance of boosting healthcare spending for better social insurance, expanding facilities in smaller cities, and advancing digital services.

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The Economic Survey 2022-23 indicated that healthcare expenditure by Centre and state governments reached 2.1 percent of GDP in FY23. Data from the National Health Accounts showed a 63 percent increase in healthcare spending from 2014-15 to 2021-22.

In contrast, OECD data revealed the US had the highest health expenditure to GDP ratio at 16.6 percent in 2022 against India's 2.9 percent.

Industry leaders also stressed the need for increased acceptance of schemes like PM-JAY and CGHS among private healthcare providers.

PD Hinduja Hospital CEO Gautam Khanna suggested a similar scheme for the middle class and allocating 2.5-3.5 percent of the GDP to healthcare. Suneeta Reddy, Managing Director of Apollo Hospitals, urged the government to prioritise the healthcare sector to spur growth and productivity.

The industry also called for easing compliance burdens, promoting medtech innovation, rationalising goods and services tax (GST) and reviewing the health cess on medtech products to ensure affordability.

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