Healthcare allocation likely to double in upcoming budget

The Modi government’s next Union Budget is set to focus on infrastructure in a bid to accelerate the economy and higher healthcare spends to fight COVID-19. The Finance Ministry may loosen its purse strings by as much 20 percent for infrastructure and 50 percent for healthcare to fight the aftermath of the coronavirus, a government source said.

The Finance ministry has kickstarted the budget-making process and will soon invite stakeholder consultation as well. The Modi government’s infrastructure commitment will be sustained for the next two years keeping in mind the upcoming G20 meet in 2022 that India will host and the 75th year of independence.

The upcoming budget may double the health sector outlay with funds being earmarked for vaccine procurement, ramping up healthcare facilities, wellness centres. The move may be in line with the 15th Finance Commission also pitching for grants to enhance per capita spending on healthcare in its report. The total allocation of Rs 69,000 crore for the health sector in Union Budget 2020-21 is about 10 percent higher from the year ago — negligible, considering consumer price index inflation was 7.5 percent in December 2019.

National Rural Health Mission (NRHM), the biggest component of the health budget allocated Rs 27,039 crore — the same as the previous budget and, in fact, less than the 2019-20 revised estimate of Rs 27,833.6 crore. Several reports, including one submitted to 15th Finance Commission in January 2020 by an expert group set up by the commission in 2019, sought more funds for primary healthcare, which caters to the rural population. A host of health schemes are bundled under NRHM.

However, India may not be able to revive its healthcare sector even with an increase of 25 percent.
MB Bureau