The increase in allocation for the health sector was welcome but more funds were needed, insiders said on Thursday. The union budget, presented by Finance Minister P. Chidambaram, has hiked health allocation by over 28 percent to Rs.37,330 crore (approx $6,900 million) with special focus on medical education, training and research.
Sangita Reddy, executive director, operations, at Apollo Hospitals, said the budget was ‘very responsible’. ‘This is a very responsible budget. It is a combination of incentives to multiple sections which have been focused on,’ Reddy said. ‘The country’s expenditure on health is lower than most of the developing and developed countries. While there has been 24 percent increase in the budget for health sector at Rs.37,330 crore, the overall percentage of GDP for health will not cross two percent. The target should have been minimum three percent of the public outlay,’ she said.
‘The current allocation can only suffice to manage primary healthcare. The increase should have been 200 percent. Few years ago, the union government imposed education cess of three percent. Similarly, one percent cess for healthcare would have been a good methodology to bridge the gap between what is required and what is available in terms of number of beds, doctors and paramedics,’ she said.
Ramakanta Panda of MD Asian Heart Institute welcomed the increase in tax on tobacco. ‘The budget has its heart in the right place, because it has made smoking expensive and green hybrid vehicles cheaper,’ Panda said. ‘The additional Rs.4,727 crore allocated for medical education, training and research will promote innovation and give the world solutions to complex modern living problems,’ he said.
‘The finance minister has very rightly accorded top priority to the health of the citizens with a stepped up increase of over 24 percent to the national health mission. ‘We also most heartily welcome the investment allowance of 15 percent intended to spur asset creation and hope the benefit of the same will be available to investments in medical equipment by healthcare providers, who operate in a capital intensive business,’ said A.M. Arun, chairperson of the Vasan Healthcare Group.
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Source: IANS