Panel asks DoP to chalk out annual action plan for timely utilisation of budgetary allocation

New Delhi, April 7, 2022:

The Department of Pharmaceuticals (DoP) has to chalk out an annual action plan for timely and resourceful utilisation of the budgetary allocation, as the Ministry of Finance provides adequate support with budgetary allocation, said a group of Members of Parliament in their latest report.

The Department Related Standing Committee on Chemicals and Fertilisers, headed by Member of Parliament Kanimozhi Karunanidhi, in its recent report on the Demands for Grants of the Department of Pharmaceuticals, said, “Unlike previous years, this year the hands of the Department have been strengthened with the requisite amount of budgetary allocation by the Ministry of Finance. Now the Department has to prove its mettle through effective implementation of all its development schemes”.

In this regard, the Committee recommend that an annual action plan with monthly achievable targets should be chalked out by the Department in respect of all the developmental schemes for which requisite amount of budgetary allocation has been made under the major heads and concrete steps should be taken for achieving targets under each of the developmental Schemes for timely and resourceful utilisation of budgetary allocations made for the year.

“An effective monitoring of implementation of each of the development Schemes should be made at the highest level in the Department and it should be ensured that the targets fixed for each of the Schemes are achieved in a time bound manner during the year 2022-23 through the full utilisation of budgetary allocation. Progress made in this regard should be intimated to the Committee,” it added.

It has noted that a gross budgetary allocation of Rs. 2,244.15 crore has been made for the Department of Pharmaceuticals at Budget Estimate (BE) stage of 2022-23 against the outlay of Rs. 10,383.25 crore proposed by the Department for the year. In comparison, the Gross Budgetary allocation for the year 2021-22 was Rs. 470.41 crore against the proposed outlay of Rs. 2,600.52 crore which was only 18% of the outlay proposed by the Department and this time it has increased to 21.6%.

Even though the actual allocation for the year 2022-23 is very less when compared to the demand of the Department, the major chunk of this allocation has been made for Central Sector Schemes of the Department. Against the proposal of Rs. 2,313.02 crore, an allocation of Rs. 2,202.50 crore has been made for the Central Sector Schemes of the Department.

For the heads relating to the ‘Development of Pharmaceutical Industry’, an amount of Rs. 1,729 crore has been allocated against the demand of Rs. 1,767.02 crore of the Department. Under the Capital Section of ‘Assistance to PSUs’, the Department demanded Rs. 8,026.78 crore but only an allocation of Rs. 5.30 crore has been made at the BE stage of 2022-23. Since the demand for grants of the Department for implementing its developmental schemes has almost been fully met by the budgetary allocation, the Committee feels that the ball is now in the court of the Department, it added.

However, the committee is concerned to note that only a token allocation of Rs.1 lakh has been made for research and development in the pharma sector for the year 2022-23. It has noted that the DoP has come out with a Policy for Catalysing Research and Development and innovation in the pharmaceutical and medical sector. A draft Cabinet note has already been circulated and extensive comments were received from both industry as well as from the Departments. Now the Policy is under finalisation stage.

“Since it is necessary to take the pharma sector to the next level of development and to increase the value of this sector in the global market, the Committee strongly recommend that this Policy should be finalised at the earliest and necessary steps should be taken up by the Department of Pharmaceuticals to implement the Policy in letter and spirit. Separate budgetary allocation is also ought to be made for Research and Development so as to put in the necessary finances into research and development in the pharma sector specifically in the medical devices industry,” averred the Committee report.

The DoP should impress upon the Ministry of Finance about the necessity of budgetary allocation for research and development in the pharma sector. It has also directed the DoP to share the recommendation of the Committee with the Ministry of Finance for the purpose.

“The Committee feel that it is important that the Government should come out with clear strategies in terms of manner in which the support should be given to the pharma sector for holistically developing the sector in all fronts and to make it a world leader. In this regard, the Committee recommends that the Government should chalk out a long term plan/strategy with the help of best of the policy makers and experts in the field so as to create a world class infrastructure in the country for the all round development of the pharma sector in the country,” it added. PharmaBiz