The Government has made a slew of big-ticket announcements for the healthcare sector
They say that every crisis hides within itself an opportunity and teaches us some vital lessons. If the COVID-19 pandemic has taught us anything, it is the need for self-reliance and the importance of having a robust healthcare infrastructure. Obviously, the Government has taken these lessons to heart and, despite an ailing economy made sicker by the pandemic, Finance Minister Nirmala Sitharaman has made some big-ticket announcements for the healthcare sector in the Union Budget. The Minister allocated Rs 2,23,846 crore to the sector, which is an increase of 137 per cent over last year’s Budget. Of the amount, the focus of the spending will be vaccination, with a whopping Rs 35,000 crore set aside for it. Strengthening healthcare institutions and capacity building will also get the lion’s share. Sitharaman also proposed an Aatmanirbhar Swastha Bharat Scheme with an outlay of Rs 64,180 crore over the next six years and the main interventions under the scheme will support over 17,000 rural and 11,000 urban wellness centres. As the Government comes to terms with the reality that “we will have to live with the virus” as environmental degradation, deforestation and a burgeoning population will make zoonotic diseases and Corona and Zika-like pandemics a regular feature, it has realised that there is a need to focus on developing the capacity of primary, secondary and tertiary care systems, strengthen national institutions and create new ones.
With this in mind, the Centre has put curative and preventive health and well-being on the forefront. The proposals would make quality healthcare accessible and affordable, besides standardising infrastructure across the country. However, the Budget is silent on the critical aspect of insurance. As health insurance premiums are increasing, raising the premium amount for tax exemption would have been a great initiative to bring more people under the cover. Increasing the Foreign Direct Investment limits in the sector and the proposed IPO of Life Insurance Corporation will surely strengthen the insurance sector. The Government also needs to prepare itself for the next crisis of non-communicable diseases, which will be responsible for 80 per cent of deaths and cause a $3.8 trillion burden by 2030. Increased allocation for other social determinants like clean fuel, air and water will have a greater impact on health. If there is a silver lining in the dark cloud that is the pandemic, it is the realisation that solid healthcare infrastructure is key for a nation that harbours the ambitions of becoming a $5 trillion economy.
