Finance Minister Nirmala Sitharaman on Tuesday will table Union Budget 2024 at 11 am today. Himanshu Sikka, Lead – Health, IPE Global (international development consulting firm) highlighted that the upcoming Indian budget at the beginning of the third term of the current government is expected to address several key challenges in the health sector.
According to Sikka, there is an anticipation of increased overall healthcare spending towards the goal of 2.5% of GDP.
Focus areas that the government is expected to likely include:
- strengthening healthcare infrastructure and climate resilience
- expanding health insurance schemes
- emphasizing digital health initiatives
- preventive healthcare.
“While an increase in government funding is expected, that alone is not going to be enough. There’s growing interest in blended finance models to increase healthcare funding, combining public, private, and philanthropic capital. The budget should look at allowing Corporate Social Responsibility (CSR) contributions in healthcare through blended finance, especially through mechanisms like the Social Stock Exchange,” Sikka said.
He also emphasised that the government should also look at creating a special fund/mission to address the growing concern about climate change impacts on public health.
“This could involve allocating funds for research and interventions into climate-related health risks, such as the spread of vector-borne diseases and heat-related illnesses. The budget should propose measures to strengthen health systems to cope with climate-induced health emergencies, including extreme weather events, with provisions for developing early warning systems for climate-sensitive health risks and initiatives to build climate-resilient healthcare infrastructure,” he said.
A significant emphasis is anticipated on expanding and strengthening public health insurance coverage, particularly the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY), he added.
“The budget should propose measures to increase the number of beneficiaries, potentially by relaxing eligibility criteria or including more health conditions under its purview. There should also be provisions for improving the scheme’s implementation, such as streamlining claim processes, enhancing fraud detection mechanisms, and strengthening the network of impanelled hospitals,” Sikka pointed out.
According to him, the budget should continue the emphasis on advancing digital health initiatives to enhance healthcare delivery, improve patient outcomes, and contribute to more efficient and cost-effective health system management across the country. The budget should look to support:
- Incentives and funding for promoting indigenous manufacturing of medical devices, aligning with the ‘Make in India’ initiative, to reduce import dependence and boost domestic production of high-quality, cost-effective medical equipment.
- Increased allocation for the expansion of the Ayushman Bharat Digital Mission (ABDM), which aims to create a nationwide digital health ecosystem.
- Telemedicine services, particularly in rural and remote areas, to improve healthcare access.
- Investment in health data analytics and artificial intelligence for predictive healthcare and efficient resource allocation could be another focus area.
- Provisions for digital health literacy programs and the development of user-friendly health apps to engage citizens in managing their own health.
