Written By: Shraddha Rupavate | Published : December 24, 2014 10:35 AM IST
A report by Reuters revealed the decision of the Ministry of Finance (MoF) to cut nearly 20 per cent from the Health Ministry's budget for the year 2014-15. Earlier this year, 31,640 crore were allocated to health ministry for the financial year, out of which over 6,000 crore will now be deducted from the allocation, said the report. The budget was hiked by 27 % from previous year for improving affordable healthcare in the country.
Apparently, it's not just the health Ministry that will be facing budget cuts in the financial year. Other ministries will also have their budgets slashed. Although the exact reason for the budget cuts has not been revealed, the fiscal deficit of 4.1% of GDP incurred this financial year could be the underlying reason.
The impact of budget cuts on health sector
According to the report, this decision could have a huge impact on initiatives designed for disease control in the country. Already the country's spending on health is the lowest among all countries in the world. The fact that the about 1.2 billion people living in India are poor, who need affordable or free health services, will be the most affected by the budget cuts. Critical health programmes including universal healthcare plan, drug programmes may be delayed.
Photo source: Getty images
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