Healthcare as an Investment, Not an Expense: Experts Call for Bold Reforms at IMPRI’s Budget Deliberation

Press Release
Deepankshi


New Delhi, February 4, 2025 – The Centre for Human Dignity and Development (CHDD), in collaboration with IMPRI Impact and Policy Research Institute, New Delhi, hosted an insightful panel discussion on Population Health and Union Budget 2025-26 as part of the IMPRI 6th Annual Series of Thematic Deliberations and Analysis of Union Budget 2025-26.

Key Highlights of the Session:

The session commenced with opening remarks from Dr. Manorama Bakshi, who provided an in-depth overview of India’s healthcare system. She highlighted key issues, including budgetary allocations, the transformative role of AI, ML, and genomics, India’s potential to become a global health leader, and the persistent challenges of out-of-pocket expenditures and workforce shortages.

Insights from Expert Panelists:

Dr. Urvashi Pandey strongly critiqued the allocation of just 11% of the total budget to healthcare, calling it insufficient for a nation of 1.4 billion people. She underscored the need to view healthcare as an investment rather than an expense, emphasizing that an unhealthy workforce would derail India’s economic growth. As a cancer patient, she passionately called for comprehensive cancer care programs at the district level and cautioned against the blind adoption of AI in healthcare due to a lack of skilled professionals and inadequate HR capacity.

Dr. Uplabdh Gopal questioned the government’s announcement of 10,000 new medical schools, pointing out the faculty shortage, infrastructure gaps, and the increasing trend of doctors migrating abroad. He emphasized that while the National Health Policy recommends allocating two-thirds of the health budget to Primary Healthcare (PHC), only a marginal 4% increase has been observed in five years—a shortfall that could hinder accessible healthcare for rural populations.

Dr. Gopal examined the government’s INR 20,000 crore investment in Medical Value Tourism (MVT), acknowledging India’s potential but warning about trust deficits, lack of transparency in pricing, and regulatory bottlenecks. Drawing comparisons with Dubai’s Healthcare City, he stressed the urgent need for a single-window medical visa portal, clear cost structures, and strong grievance redressal mechanisms to position India as a global medical tourism hub. He also advocated for Public-Private Partnerships (PPP) to integrate medical tourists into India’s healthcare framework while maintaining ethical standards.

Dr. Poonam Muttreja, an expert in maternal healthcare and family planning, criticized the government’s healthcare spending, which remains below 1.5% of GDP, far short of the 2.5% target. She highlighted the underappreciated role of ASHA and Anganwadi workers, who form the backbone of community healthcare yet remain underpaid and overburdened. She also addressed population stabilization, youth skilling, geriatric care, and behavioral changes in gender roles to empower women economically. She strongly countered recent political narratives promoting higher birth rates, calling for a data-driven approach to population planning.

Dr. M.R. Seetharam, a senior orthopedic consultant, cautioned that budget allocations alone do not drive impact unless utilized effectively. He highlighted inefficiencies in fund distribution, citing the common practice of last-minute spending sprees at the end of the financial year. Advocating for transparent governance, decentralized decision-making, and multi-sectoral collaboration, he called for a greater role for youth in preventive healthcare initiatives.

Concluding Remarks:

The session underscored that India’s healthcare sector requires not just increased budgetary allocation but also strategic and transparent implementation. Panelists collectively emphasized that primary healthcare infrastructure, workforce training, and digital health integration must be prioritized to ensure equitable access to quality care. The discussion highlighted the urgent need for structured incentives to address medical faculty shortages, stronger regulations to bridge the public-private trust deficit, and better financial recognition for frontline health workers like ASHA and Anganwadi workers.

Medical Value Tourism, while promising, must be accompanied by clear governance frameworks and streamlined patient-centric policies. As aptly remarked, “A nation’s health is its greatest wealth. We cannot afford to neglect the very foundation of our development.” The event concluded with a call for actionable reforms to transform policy into tangible improvements in public health outcomes.

IMPRI’s 6th Annual Series of Thematic Deliberations and Analysis of Union Budget 2025-26

IMPRI’s 6th Annual Series of Thematic Deliberations and Analysis of Union Budget 2025-26

Watch the event at IMPRI #Web Policy Talk

Population, Health, and Union Budget 2025-26

Acknowledgement- This article is written by Deepankshi, an Intern at IMPRI.

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