Budget 2017 for HealthCare

PSM News /

While delivering Union Budget 2017, Finance Minister Arun Jaitley said that the government has prepared an action plan to address poor health. The government has targeted the elimination of tuberculosis by 2025. The budget proposal said that the 1.5 lakh health sub-centres will be transmuted into health and wellness centres. The government has also introduced several measures to make the drugs and devices affordable and accessible to all. There needs to be a sturdier focus on stronger infrastructure fund creating environment to ensure that startups can focus on domestic production of equipment, medical devices and interactive wearables.

One of the major highlights for the healthcare space is the focus on new rules on medical devices, aimed at attracting investment in the healthcare sector and ensuring the reduced cost of medical devices that benefit the common man.

The two new AIIMS hospitals are proposed to be set up in the states of Gujarat and Jharkhand. The government is making structural reforms in medical education and practice in order to increase the number of doctors in secondary and tertiary care. This is a welcome move and operationalizing these Institutes with quality resources needs to be expedited. Further, the overall health budget has increased from Rs. 39,879 crore (1.97% of total Union Budget) to Rs. 48,878 crore (2.27% of total Union Budget).

Finance minister also added that the government has announced that the drugs and cosmetics Act will be modified to promote generics and reduce the cost of medicines. These modifications further encourage the local manufacturers’ to move towards improving accessibility and affordability for patients.

Key Highlights of the Budget 2017 for the healthcare sector in India:

  • Government proposes to eliminate Kala-Azar by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025.
  • Infant Mortality Rate aimed to be reduced from 39 to 28 in India.
  • Additional 5000 seats per annum for Post-graduation to facilitate the adequate availability of specialized doctors for secondary and tertiary hospitals across the nation.
  • The government will encourage big District Hospitals, Private Hospitals, and Government Hospitals to roll-out DNB courses.
  • Senior citizens to have Aadhar based smart cards with their health details.
  • National Dialysis Program under National Health Mission through Public-Private Partnership.
  • Jan Aushadhi Yojana encouraged.

PSM-India really appreciates the budget 2017 proposal for healthcare as this budget has provided some policy direction and restated the Government intent to address some of the serious challenges facing the Health Sector.  These proposals have to be backed up with appropriate action. Also it would have been much appreciated if the government allocated atleast 5% of our GDP on Healthcare. PSM India supports the government in the steps taken and applauds their moving closer to universal health coverage wherein people will be able to access the quality health services that they need without suffering financial hardship, being the key goal of the 12th Plan.