Healthcare needs a strong dose of support from Union Budget, say experts

Budget -2024

The Union Ministry of Health and Family Welfare received an allocation of Rs 89,155 crore for the fiscal year 2023-24, marking a 13 percent increase over the revised estimates for the previous year. The budget increment aimed to address the challenges faced by India, possessing the world's largest population, and grappling with rising chronic diseases.

However, even this double-digit increase in allocation left many disappointed.

K Sujatha Rao, former Union Secretary of the Ministry of Health and Family Welfare, expressed her discontent with the allocation for the health sector following the budget announcement. She took to the social media platform X to share her disappointment, calling it the "Most boring budget insofar as the health sector is concerned." Rao highlighted the lack of significant investments and financial risk protection for the lower middle classes, stating, "Yet another year gone by. Very disappointing.”

General consensus amongst industry experts is that the budgetary allocation for healthcare needs to be further ramped up to address the sector's woes and to better serve the healthcare needs of India’s large population.

ALSO READ: Budget 2024: What healthcare, MSME, tea, and maritime sectors expect

“An increase of budget in the upcoming budget is imperative to cater to the key focus areas for the sector. This increase will facilitate improved healthcare infrastructure, increased R&D capabilities, and enhanced preventive measures. Increased investment in modern tech and digitization is the need of the hour for the healthcare sector, said Dr Tarang Gianchandani, Group CEO, Sir HN Reliance Foundation Hospital.

Critics argue that the Indian public health system's limitations were glaringly exposed during the Covid-19 pandemic. In India, states carry the responsibility for public health, while the Ministry of Health and Family Welfare formulates policies, provides administrative and financial support, and oversees health research.

A significant concern has been the historically low investment in primary healthcare, leading to infrastructural issues and slow improvement in health indicators according to various global rankings.

The Department of Health and Family Welfare received a substantial allocation of Rs 86,175 crore, representing 97 percent of the Ministry's expenditure, with Rs 2,980 crore allocated to the Department of Health Research.

The 2023 budget saw a noteworthy increase in allocation towards the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM ABHIM), which more than doubled from Rs 1,885 crore in the previous fiscal year to Rs 4,200 crore in 2023-24.

PM ABHIM focuses on creating primary health infrastructure, addressing common health issues, providing essential drugs, maternal and child care, immunization, and preventive measures.

Under PM ABHIM, financial support is directed to states for expanding comprehensive primary healthcare, including the establishment of Health and Wellness Centres (HWCs). The mission aims to set up 17,788 HWCs in rural areas, 11,244 in urban areas, and additional public health units, laboratories, and critical care blocks. However, concerns arise about the ability to utilize funds effectively, as indicated by fluctuations in allocations between stages.

“There is a need to have more hospitals and healthcare facilities in rural and suburban areas to meet the rising demand given that Ayushman Bharat is aiming to make affordable healthcare accessible for 500 million people,” said Dr Azad Moopen, Founder Chairman, Aster DM Healthcare.

The National Health Mission (NHM), aimed at achieving specific health outcomes in rural and urban areas, experienced a decline in allocation in real terms in 2023. Despite recommendations to increase NHM allocations, the revised estimates for 2022-23 only saw a minimal increase of 0.4 percent.

Stay tuned with our live updates: Budget 2024 LIVE Updates: Nirmala Sitharaman's Union Budget speech to start at 11AM