Union Budget 2024: Increased healthcare allocation still falls short of expectations

Dr Anupam Anand , Department of General Medicine, Sharda Hospital:  

“ The Union Health Ministry has been allocated Rs 90,658.63 crore in the interim Budget for 2024-2025, a 12.59 per cent increase from the previous year. The government seems to be committed for allocation of budget to improve the quality of healthcare. Rural India specially needs this boost. The Key highlights are three cancer treatment medicines have been exempted from basic customs duty which is going to benefit the needy patients a lot.

The Healthcare cover under the Ayushman Bharat insurance scheme will be extended to all ASHA and Anganwadi workers and helpers .This will provide both, incentive as well as broad reach of welfare schemes. The government plans to set up more medical colleges by utilising existing hospital infrastructure. By doing this the doctor patient ratio will be improved.

Various schemes for maternal and child healthcare will be brought under one comprehensive program for synergy in implementation. The government will encourage vaccination for girls in the 9-14 year age group for the prevention of cervical cancer. This is a remarkable step. All in all a budget with good intentions but we need more budget allocation and better implementation of the vision.”

Dr B S Ajaikumar,  Executive Chairman, HealthCare Global Enterprises:

“We welcome the measure to exempt the three cancer drugs, viz Trastuzumab deruxtecan, Osimertinib, and Durvalumab from basic customs duty, but given that these are exorbitantly priced, it won’t make much of a difference for the patient, especially those from low income groups. The intent is fine, but the outcome leaves much to be desired. The net effect of the proposed changes in the basic customs duty for X-ray tubes and flat panel detectors for use in medical X-ray machines calls for a granular study, but the effort is nevertheless laudable.  

The marginally higher allocation to healthcare again has woefully fallen short of addressing its pressing needs and priorities, and it pales into insignificance before the substantial allocations to defence and other priority sectors. Time and again, we have seen the pain points going unaddressed which can only be resolved through an universal health coverage to enforce uniformity of treatment through the cross subsidy model, which can in turn arrest the financial strain and debt traps that the poor and deprived perennially face.

There is no rationalisation of tax structure around life-saving drugs and emergency treatments. I was disappointed to see the key area of GST unaddressed, as also with no move to incentivise the private sector for bridging the urban-rural divide in the accessibility and affordability of healthcare services. Talking of education, it is high time we introduce the proven voucher system to transform the primary and secondary education in a sustainable manner.

The concessions on personal taxation front are heartening, but there is no stimulus to economic growth. Countries like Singapore have reaped rich dividends from their favourable policies for citizens and entrepreneurs including tax breaks, low corporate tax, and no burden of capital gains tax. Why can’t India not follow suit?”

Dr Suman Katragadda, CEO of Heaps.ai. :

“The Union Government in the Budget 2024-25 has overlooked the critical importance of healthcare in the budget announcement. According to the Economic Survey 2023-24, India has one of the world’s highest out-of-pocket expenditures resulting in poor households being pushed below the poverty line. It is concerning that there were no specific measures for the healthcare sector. While infrastructure growth is vital for any country, it is equally important to address the challenges within the health insurance sector. Statistics show that Nearly 400 million individuals in India have zero access to health insurance. These figures are alarming, and the government of India should work towards reforms that will benefit the Healthcare Industry as a whole. 

Furthermore, there is a need to address the growing importance of care management services in India. The burden of hospitalisations and repeat hospitalisation takes a toll on the physical and psychological health of a person, the government should work towards improving care coordination and care management services in the country,” 

Dr P R Sodani, President, IIHMR University.

“As an institute devoted to nurturing innovation and excellence, we commend the government on this year’s budget, demonstrating a strong commitment to strengthening education & skilling among youth. The significant investment in one thousand industry training institutes, and the provision of 1.48 lakh crore rupees for education, employment and skilling will build a strong support system for educational delivery. The allocation of 10 lakh crore loans for higher education in domestic institutions and the revision in skilling loans upto 7.5 lakh will enhance the skillset of our students, and improve participation rate in educational institutes. Moreover, it is promising to see governments focus on providing internship opportunities to 1 crore youth in 500 top companies with a stipend of 5000 rupees giving them market exposure. Such initiatives are poised to elevate India to stand on par with its western counterparts.”