Union Budget 2024 | Disappointing one for health sector
New Delhi: The Union Budget turned out to be a disappointing one for the healthcare sector as Finance Minister Nirmala Sitharaman did not announce any new scheme, leaving a cut in the customs duty for three cancer medicines as the only cheering news to take away home.
The Union Health Ministry’s allocation of Rs 87,657 crore is less than what was announced in the interim budget and is marginally higher than the budgetary allocation of last year.
The money earmarked for schemes like Ayushman Bharat Health Infrastructure Mission, programme to prevent AIDS and sexually transmitted disease and PM Swasthya Suraksha Yojna for upgrading hospitals has been slashed. For many other programmes, the allocation was at the same level.
The only good news came in the tax proposals when Sitharaman said to provide relief to cancer patients, she proposed to fully exempt three more medicines from customs duties.
The medicines - Trastuzumab Deruxtecan, Osimertinib and Durvalumab – used for various types of breast, lung and stomach cancers currently attract 10 perc cent customs duty, which will be brought to nil.
Also a 15 per cent customs duty on X-ray tubes and flat panel detectors used in medical, surgical, dental and veterinary machines has been reduced to 5 per cent till March 31, 2025 and 7.5 per cent after that date.
There was also no announcement on the inclusion of senior citizens in the flagship PMJAY Ayushman Bharat scheme as revealed by the President Droupadi Murmu while addressing the joint session of the Parliament at the start of the 18th Lok Sabha.
Health experts noted that the budget was a disappointing one as the expectations were more. “Population Foundation of India is surprised and disappointed that the Union Budget 2024-25 virtually neglected adequate investment in health, nutrition and education. It was highly unexpected to see health to be missing among the nine top priorities of the government,” said PFI executive director Poonam Muttreja.
India’s combined Central and state government spending on healthcare has more than doubled since 2017 but failed to reach the 2.5 per cent of the Gross Domestic Product, a goal articulated by the Narendra Modi government in its 2017 health policy document. The out of pocket expenditure is around 50 per cent of the government’s total health expenditure.
"A marginally higher allocation for developing, maintaining and improving the country’s healthcare system, is far from encouraging to the Indian healthcare sector as a whole. Healthcare should have gained more priority in Union Budget 2024," said Raj Gore, CEO, Healthcare Global Enterprises Ltd in a media statement.
Highlights
1.7% rise in health budget from FY24
No major announcement on health
Allocation is less than interim budget
Customs duty of three cancer drugs abolished
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.