Union Budget 2023: What Health Sector Expects From The Upcoming Budget?

As the countdown for the Union Budget 2023-24 begins, experts from the healthcare industry share their expectations from the upcoming budget this year.

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Written By: Longjam Dineshwori | Updated : January 24, 2023 5:00 PM IST

The government took cognizance of the rising mental health problems in the country, especially during COVID-19 pandemic, and proposed to launch the national tele mental health programme in the Union Budget for the year 2022-23. It turned out to be one of the biggest announcements in the health sector, which was highly applauded by leaders and experts in the healthcare industry. In line with the budget announcement, the Union Ministry of Health & Family Welfare in October 2022 launched the programme, called Tele Mental Health Assistance and Networking Across States (Tele-MANAS) to provide free, round-the-clock teleconsultation service for mental health concerns. Finance Minister Nirmala Sitharaman also proposed the launch of an open platform for the National Digital Health Ecosystem under the Ayushman Bharat Digital Mission. Overall, INR 86,200 crores was allocated for the pharmaceutical and healthcare sector in the last year budget.

As the countdown for the Union Budget 2023-24 begins, experts are optimistic that healthcare sector will get a lot more attention from the government this year. Here are a few major budget expectations shared by leading industry players:

More investment on vaccinations, less import fees

Stating that he fight against COVID-19 is far from over, Jesal Doshi, Deputy CEO, B Medical Systems, opines that more investment is needed on vaccinations.

He says, "Focusing on this year's significant stories is essential as we cautiously go into 2023. The widespread vaccination effort, which immunised over 100 crore people, was a significant victory for the Indian government. All throughout the world, nations praised this courageous deed. We anxiously await the government's announcement of funds for the initiatives we want it to prioritise this year. Spending more money on vaccinations is one of the goals, especially across the board in the healthcare system. India must have the right tools since the fight against COVID-19 is far from over. Considering the drastically dropping immunisation rates, it also necessitates acting quickly. The government must enact stricter regulations for the storage and delivery of these life-saving vaccines to both the public and private sectors. Additionally, stress the significance of using certified, top-notch medical grade equipment. Once more, they must take into account a more long-term framework to guarantee that immunisations are accessible in India's rural areas."

He believes that separating the medical cold chain from commercial refrigeration and establishing a specialised business could aid in the expansion of the sector. "To make it simpler to create dependable medical cold chain chains, the government should reduce import fees on necessary components," Doshi adds.

Stronger women's health policies

Sandeep Vyas, Founder of Mild Cares (GynoCup) is expecting a more gender centric and gender responsive budget this year.

He shares. "Trumpeting a new era in women healthcare ecosystem and growth for the women, so the budget 2023 should be more gender centric and gender responsive. In the budget 2023-2024, our healthcare programmes should be approximately 2.5% to 3% of GDP. Women's health policies should be stronger and more tailored to their specific needs. This covers systems and policies that reflect and promote women's health, such as women's hygiene and menstruation, nutrition, prenatal and postnatal care, and wellbeing."

Vyas also stresses the need for establishment of upgraded healthcare centres and clinics that provide reproductive child health services in rural and urban locations throughout the country, to ensure the safety of women during pregnancy and postpartum. "We must brace ourselves for a better tomorrow after battling the most ferocious form of the pandemic in recent years," he adds.

Accessible and affordable drinking water

Vijender Reddy Muthyala, Co-founder and CEO of DrinkPrime applauds the government for making drinking water more accessible through initiatives like the Jal Jeevan Mission-Har Ghar Jal, but he also believes that it is critical to make it affordable.

He suggests, "Lowering or eliminating GST on water purifiers, as consumer durable, will help treat them as an essential service required by all Indians. It will encourage people to invest in their health while helping mission oriented brands like DrinkPrime provide clean, safe and healthy drinking water to everyone."

He adds, "Lake rejuvenation and ground water regeneration is the need of the hour. There are several NGOs and startups that would benefit greatly if the government would sanction some budget for the same or launch initiatives that serve the purpose. Similarly, taxation on ESOPs should occur at the final sale of shares rather than when they are offered. This makes attracting good talent difficult in an already competitive market with a severe talent shortage. If this is addressed, organisations will be able to offer additional benefits to potential or high-performing employees."
As more smart city plans flow out, he wants the government to also focus on IoT technology as it is definitely the future of smart ownership.

Sufficient manpower in hospitals, revision of Ayushman Bharat scheme

Pritika Singh, CEO of Prayag Hospitals Group, points out that while new hospitals have been set up in many places, including in rural and remote areas, there is not enough manpower to run the hospitals. Hence, she feels that government should focus on the equal distribution of sufficient manpower in hospitals across the country.

"Manpower is a big concern, and these healthcare professionals should be well-trained so that they can use the latest technology and be a part of the digitalization process. In that direction, private hospitals should be allowed to provide paramedical courses so that this manpower shortage can be met," she says.

She also expresses that the price list that was fixed under the Ayushman Bharat scheme is not satisfactory as it ends up in losses for private hospitals. So, she wants a further revision of the rate list under PMJAY.

"Another crucial aspect is the setting up of more dedicated mental health hospitals across the country. Mental health is still a taboo in our country and people should know the difference between mental hospitals and mental health institutions," Pritika concludes.

Increase healthcare expenditure to 2.5 per cent of GDP

Amrit Singh, Co-founder and CRO at Loop, says, "Covid-19 pandmeic was a wake-up call for Indian healthcare. India has not yet achieved the goal of spending 2.5 per cent of its GDP on healthcare. 90 per cent of healthcare services are privatized making them unaffordable and out of reach for the common man. Providing insurance to all does not solve the access problem. We are anticipating more investment in improving healthcare access to all Indians and making it affordable."

Allocate resources forholistic treatment of mental health

With February less than a week away, all eyes are surely set on this year's Financial Budget allocation. The industry players in the mental wellbeing space hold high expectations of the budget considering the rocketing importance of mental health today. The total health budget allocation for the 2022-23 year was INR 86,200.65 crores, out of which INR 83,000 crore was allocated to the Department of Health and Mental Health.

This year, Richa Singh, Co-Founder & CEO, YourDOST, is expecting more holistic contributions in the health sector, specifically in the mental health section to reduce the existing treatment gap.

She states, "In my opinion as a mental health entrepreneur, the Union Budget of 2023-2024 must acknowledge the increase in mental health issues in India. So, the budget for mental health should allocate resources for the holistic treatment of mental health issues by creating provisions to use PSR budgets on health/mental health initiatives for underprivileged sections. Furthermore, training programs around stress management for our frontline workers must be designed apart from mandating emotional wellness programs for colleges and corporates. A key incorporation would be the exemption or reduction of GST on counseling services for citizens. This will ensure greater affordability of quality services and greatly benefit the masses."

"In 2023-24, the Finance Minister should also be vigilant of ensuring a budget for effective implementation, regulation, and governance of Mental Health policies" she adds.

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