Arushi Bidhuri
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Written By: Arushi Bidhuri | Updated : February 2, 2021 9:02 AM IST
Experts draw out the strengths and shortcomings of health budget 2021
Finance Minister Nirmala Sitharaman presented the Union Budget 2021 in the Lok Sabha on Monday. The budget was prepared to keep in mind "never seen before" COVID-19 pandemic. She announced a new centrally sponsored scheme for the healthcare sector. Keeping in mind the shortcomings of the healthcare sector in India, the government focused on it the most this year.
For the financial year 2021-22, the government announced Rs 2.23 lakh crore for the healthcare sector. The government is all set to launch a new scheme called "Aatma Nirbhar Health Yojna" with a total outlay of Rs 64,180 crore over a period of the next 6 years. The government will set up 15 health emergency centres, which will strengthen the National Center for Disease Control.
Commenting on the Union Budget 2021, Mr Sanjiv Navangul, MD & CEO, Bharat Serums and Vaccines Ltd, (BSV)says, "The union budget has given a substantial increase to bolster the healthcare sector in India. INR 35000 cr for COVID-19 vaccine and the commitment to the pneumococcal vaccine to be rolled out nationwide to avert child deaths is a massive boost. A well-spent allocation of INR 64,000 cr under the new Atmanirbhar Swasthya Bharat Yojana scheme will show significant results thus labelling #healthyindia as an encouraging effort. And, the infrastructural push will certainly create many more skilled jobs revitalizing the overall ecosystem".
"Last year the whole world understood that economic growth could come to a grinding halt without adequate health infrastructure, availability of expert doctors, and investment in healthcare research. India's public spending on healthcare is less than 1.5 % of GDP compared to 5% by China and Russia, 8% by South Africa, and over 9% by Brazil. India needs to increase its spending on healthcare to at least 2.5% of GDP.
A 5% healthcare cess on the import of selected medical equipment will help boost domestic production, but this is too little for the development of the local industry. India has the lowest per capita spend ($3) on medical devices among BRIC nations compared with Brazil($28) and Russia ($43). India's medical devices market is about $15 billion, which is expected to grow to $50 billion by 2025," said Rajneesh Bhandari, Founder NeuroEquilibrium, Angel Investor, Healthcare thought leader.
He further elaborated, "Today India imports 80% of its requirement. The budget announcement to adopt Artificial intelligence is a welcome step to encourage the development of cutting-edge technologies to increase access and reduce costs in the healthcare sector. The allocation of 9000 crores for the elderly could help in innovation in elderly healthcare, but there is not much clarity on the utilization of this scheme. The proposal to set up hospitals on PPP mode and the linkage of private medical colleges with district hospitals is a good step to solve the problem of access to healthcare and the shortage of doctors."
"We have been saying that emphasis on Promotive, Preventive and Primary care only can help in making of a Health India. One rupee spent on these 3 Ps can save five on curative care. Sanitation, Drinking water, and nutrition have a similar impact. We are happy to note that the Union Budget is focused on these issues. Simultaneously the Government should aggressively initiate reforms in medical education, including for the nursing and allied health workforce. In terms of resource allocation and policy support amid a once-in-a-century pandemic Union Budget 2021-22 looks progressive," opined Dr Girdhar Gyani, Director General, Association of Healthcare Providers- India ( AHPI)
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