Press Release
Shubhika Rathi
The IMPRI Center for the Study of Finance and Economics (CSFE), IMPRI, Impact and Policy Research Institute, New Delhi, hosted an interactive panel discussion on the topic “Population, Health, and Union Budget 2024-25” on 25th July 2024, under IMPRI 5th Annual Series of Thematic Deliberations and Analysis of Interim Union Budget 2024-25, as part of IMPRI #WebPolicyTalk.
The chair for the session, Dr. Manorama Bakshi, Director and Head of Healthcare and Advocacy at Consocia Advisory; Founder and Director of the Trilok Raj Foundation (TRF); and Visiting Senior Fellow at IMPRI, commenced the session by outlining the budgetary allocation to the Healthcare sector. Out of the ₹90,958.63 crore allocated to the Health Ministry, ₹87,656.90 crore has been allocated to the Department of Health and Family Welfare, reflecting a 12.93% increase from the revised allocation for the previous year.
She highlighted major announcements by the Finance Minister, including customs duty exemptions on X-ray tubes and flat-panel detectors for use in medical X-ray machines to promote domestic manufacturing. To improve the affordability of cancer treatment, the Ministry of Finance has exempted three additional cancer drugs from customs duties. The budget expenditure for FY 2024-25 under the NHM increased by approximately ₹4,000 crore, from ₹31,550 crore to ₹36,000 crore. She concluded with a poignant question: whether this allocation is sufficient to address the critical issues surrounding this important pillar of Viksit Bharat.
Professor Pradeep Panda, Professor and Dean at the School of Public Health, Asian Institute of Public Health (AIPH) University, Bhubaneswar, began on a positive note about the aggressive fiscal policy adopted by the government. He believes the allocation of resources between growth and welfare aspects of the economy has been fair. However, he expressed concerns about the high allocation to the government’s allied states, Bihar and Andhra Pradesh, and the lack of emphasis on structural reforms.
Regarding the healthcare sector, he pointed out that the allocation to the ministry is around 0.28% of GDP, which is insufficient. He emphasized that the amount allocated to schemes often exceeds what is actually spent, citing data on schemes like Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM), Pradhan Mantri Swasthya Suraksha Yojna, and National AIDS and STD Control Programme, which have seen utilization rates of around 50%. He also mentioned the abolition of Angel Tax as a significant relief for the manufacturing sector of healthcare equipment and healthcare startups.
Dr. Shobha Suri, Senior Fellow of the Health Initiative at Observer Research Foundation (ORF), New Delhi, raised concerns over the low allocation to the sector and observed a stationary pattern of allocation. Agreeing with Prof. Panda’s statement on low utilization, she noted that some crucial schemes regarding maternal health have been overlooked, and the income of Anganwadi workers has remained stagnant for years. Despite the increasing population, mentions of food security and additional nutrients have been overlooked. She highlighted the need to invest in Health Infrastructure and Human Resource Development for long-term gains and better service provision.
Mr. Abhijit Mukhopadhyay, Consulting Economist at The Secretariat, noted that the increase in allocation from the previous year’s budget is just 0.4%, and when adjusted for inflation, the allocation has effectively decreased. He suggested that the government adopt a robust impact assessment mechanism to drop ineffective schemes and develop better ones. He also expressed concerns over India’s aging population and the need for free healthcare services, despite the presence of health insurance. He concluded by stating that the major lesson from the pandemic is the importance of strong healthcare infrastructure.
Prof. Sanghmitra Sheel Acharya, Professor at the Centre of Social Medicine and Community Health, Jawaharlal Nehru University (JNU), New Delhi, mentioned the positives of budget announcements like the exemption on customs duties for cancer medicines and X-ray machine parts. She noted that while there were high expectations for the healthcare sector, it was barely mentioned in the budget session.
Key issues regarding the high dependence on the insurance model were raised. It was discussed how this model is increasing capitalization and privatization of the sector, which tends to favor the upper sections of society. It was also observed that sexually transmissible diseases and non-communicable diseases were overlooked in the budget session. The session concluded with the chair’s remarks on significant strides in cancer treatment and the National Health Mission but noted that critical issues have been overlooked by the government. She emphasized that small initiatives alone are insufficient for reaching the last mile and highlighted the importance of R&D in healthcare, citing examples from various countries.
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
IMPRI’s 5th Annual Series of Thematic Deliberations and Analysis of Union Budget 2024-25
Watch the event at IMPRI #Web Policy Talk
Population, Health, and Union Budget 2024-25
Acknowledgement- The article is written by Shubhika Rathi, Research Intern at IMPRI, pursuing Bachelor’s in Economics at Symbiosis School of Economics.
