Are we doing enough for the healthcare sector?

India has witnessed a steady rise in healthcare allocation and spending. The interim budget presented earlier this year adhered to this trend, as India advances towards its 2025 deadline of increasing the healthcare expenditure to 2.5% of the GDP. The interim budget also saw some interesting additions to the healthcare schemes – a scheme to promote cervical cancer vaccination for girls aged between 9 and 14 years, an increase in allocation of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) from 7,200 crore to 7,500 crore, and introduction of an online platform to improvise the immunization management for ‘Mission Indradhanush.’ All eyes were then set on the main budget for 2024-25 to understand what benefits the healthcare sector would gain. The recently announced budget, however, has focussed on employment and infrastructure as two pillars of ‘Viksit Bharat’ leaving behind the demands of the healthcare sector.

Key facts:

The budget has allocated Rs 90,958.63 crore to the Union Health Ministry, which is a 12.9 percent jump from the revised estimates for 2023-24. The allocation of these funds can be understood across three dimensions. First is the affordability of drugs and medical services, second is the government’s medical insurance scheme, and third is research and development in the healthcare sector. On the first front, the government has exempted and slashed the customs duty on three cancer treatment drugs, and X-ray tubes, and flat panel detectors respectively. Though there is no change in the monetary contribution for PM-JAY, the scheme has been expanded to include  ASHA workers, Anganwadi workers, and helpers. For research and development, Rs 3301.73 crore has been allotted to the health research department.

Gains and Losses:

The tax exemption for life-saving drugs used in cancer treatment and slashing taxes on X-ray tubes will make healthcare treatment more affordable and accessible to patients across the country. Setting up medical facilities, especially for Bihar will promote regional development. 

However, there are several drawbacks. Firstly, the new schemes like vaccination against cervical cancer are included under the purview of the National Health Mission (NHM), however, the funds allotted to NHM remain unchanged. Though PM-JAY has been expanded to include other categories of people, the funding remains the same as before. Development and strengthening of the Primary Health Centers (PHCs) to reduce the burden on hospitals remain unaddressed in the budget. Improvement in the availability and quality of the medical workforce finds no mention in the budget. Though the Economic Survey of 2024-25 mentioned that obesity and mental health disorders are on the rise, there is no scheme to tackle this healthcare crisis.

Conclusion:

The healthcare budget has seen an improvement in terms of the affordability of certain medicines and services, and accessibility to healthcare services in certain underdeveloped regions. However, with the same previously allotted funds, more schemes under NHM and more beneficiaries under PM-JAY reduce the benefits for the citizens. Challenges of the past like the underdevelopment of PHCs and the lack of a multilayered and multiskilled medical workforce continue to remain unaddressed. Problems faced by today’s generation like obesity and mental health disorders remain out of sight for the government’s action.

A well-crafted healthcare budget is an investment in the well-being of our nation. By addressing the above-mentioned challenges, healthcare resources will be allocated efficiently and effectively, paving the way for a healthier, happier, and more productive labour force.