The healthcare representative body suggested the government enhance the budget allocation to help expand social insurance schemes, boost healthcare reforms, and improve infrastructure.
The Indian government was asked on Tuesday to raise the budgetary allotment for health to 2.5 percent of GDP by National Health, a forum that represents all Indian stakeholders. The organization demanded that the healthcare GST framework be reorganized.
Giving its pre-budget recommendations, NATHEALTH stressed that the government needs to undertake transformative measures to prioritise strengthening its infrastructure and make strategic investments to overcome the constraints on the supply end, reported PTI.
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National health calls for boosting budget allocation on health to 2.5% of GDP
The body said in its statement, “India’s public spending remains low, at only around 1.6–1.8 percent of GDP. These allocations are insufficient to tackle the magnitude of its challenges.” As recommendations, it suggested the government enhance the budget allocation to 2.5 percent of the GDP to help expand social insurance schemes, boost reforms and infrastructure, and fast-track digital health services across the country.
Elaborating on the need for rationalisation of GST for the healthcare sector, the association said that while a boost in budget allocation has been a request from the sector for a long time, another important issue has been regarding the credit chain through GST.
Restructuring healthcare GST framework
It was noted that indirect taxation and a lack of input credit for providers remain major challenges for the healthcare industry. It strongly suggested that the Finance Bill should outline a reform agenda to restructure the healthcare GST framework.
“India’s healthcare demands urgent and strategic reforms. I advocate for increasing our IT budget to 2.5 percent of GDP, rationalising the GST framework, and strengthening our healthcare value chain. It is crucial to focus on capacity-building and training professionals to meet the growing demands of our nation. These steps are vital for a robust and responsive IT system in India,” stated NATHEALTH President Ashutosh Raghuvanshi. He is also the managing director and CEO of Fortis Healthcare
Healthcare workers
The healthcare body further called for a focus on strengthening the value chain to help elevate local capabilities, which would in turn facilitate providing care to the most remote areas. It also stressed that the government should disburse funds for training and development programmes for doctors, nurses, and allied healthcare workers.
Frequently asked questions
What percentage of GDP will be spent on health in India in 2023?
The central and state governments’ budgeted expenditure on healthcare touched 2.1 % of GDP in FY23 and 2.2% in FY22, against 1.6% in FY21, as per the Economic Survey 2022–23 tabled in Parliament by finance minister Nirmala Sitharaman on Tuesday
What is the allocation for health in Budget 2023?
In 2023–24, the Ministry of Health and Family Welfare has been allocated Rs 89,155 crore. This is an increase of 13% over revised estimates for 2022–23. The Department of Health and Family Welfare has been allocated Rs 86,175 crore, which accounts for 97% of the Ministry’s expenditure.
What is the budget of the health sector?
The Ministry of Health and Family Welfare received an allocation of Rs 89,155 crore in the Union budget for 2023–24, an increase of 12.6 percent compared to the revised budget estimates for 2022–23.
Which country spends the most on healthcare?
While U.S. health care spending is the highest in the world, Americans overall visit physicians less frequently than residents of most other high-income countries.
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