The Union Budget 2024 has allocated ₹90,959 crore to the health sector, reflecting a substantial 12.6% increase from the previous year. The budget prioritizes the Department of Health and Family Welfare with ₹87,657 crore and the Department of Health Research with ₹3,302 crore.
Ayushman Bharat-PMJAY Funding
Ayushman Bharat-PMJAY, which offers a health cover of ₹5 lakh to 12 crore poor and vulnerable families, received ₹7,300 crore, up by ₹500 crore from last year’s ₹6,800 crore. Despite this increase, the plan to include all senior citizens above 70 years in the scheme remains unfunded. An official commented, “The expansion must be approved by the Union Cabinet, and there must be a special provision to allocate funds for this purpose. It will take time.”
The Missing Promise for Senior Citizens
Despite the substantial budget allocations, the omission of the health cover for senior citizens above 70 under Ayushman Bharat-PMJAY is a significant unfulfilled promise. This inclusion was expected to require an additional ₹4,000 to ₹5,000 crore, which was not allocated. The absence of this provision highlights a critical gap in the budget, leaving many elderly citizens without the promised healthcare coverage.
In a TOI report, Shailesh Mishra of Silver Innings NGO, highlighted the importance of addressing senior citizens’ needs, stating, “The senior citizen railway concession was crucial for the mobility and independence of the elderly.” He also pointed out that the call to withdraw the 18% GST on mediclaim services and accommodation for senior citizens had been ignored. Furthermore, there was a plea to include all individuals over 60 years of age in the Ayushman Bharat health insurance scheme irrespective of their age.
Currently, the government has announced that only people who are over 70 years of age will be automatically eligible for free healthcare. Mishra emphasized, “The Niti Aayog report 2023 and Economic Survey 2024 had highlighted the importance of addressing senior citizens’ health and other issues, yet these concerns were overlooked in the budget.”
Several senior citizen groups had petitioned the government to increase the old age pension from ₹3,000 to all non-taxpaying seniors. Experts had also called for a national policy on dementia.
Exemption of Cancer Drugs from Customs Duties
One of the key highlights is the exemption of three cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—from customs duties. Finance Minister Nirmala Sitharaman stated, “To provide relief to cancer patients, I propose to fully exempt three more medicines from Customs duties.” This move aims to reduce the cost and improve the accessibility of these life-saving treatments, crucial for various cancers including breast, lung, and urothelial carcinoma.
Industry Reactions to Budget Proposals
Anand K, Managing Director & CEO of Agilus Diagnostics, praised the measures: “The exemption of critical cancer medicines from custom duty is a crucial step in making life-saving treatments more accessible.” Sudhir Mathur, Founder & CEO of Meradoc Healthtech Ltd, applauded the forward-thinking proposals, particularly the abolition of Angel Tax for all investor classes.
Dr. P N Arora, Chairman of Yashoda Super Speciality Hospitals Kaushambi, remarked, “The first budget of Modi 3.0 presented by FM Nirmala Sitharaman has outlined nine priority areas paving the way for ‘Viksit Bharat’. The announcement to exempt three more essential medicines for cancer treatment comes as a big relief for patients.”
Tamanna Singh, Co-founder of Menoveda, added, “The Union Budget’s allocation of ₹90,658.63 crore for the health sector is a major step towards enhancing India’s healthcare infrastructure.”
Changes to Basic Customs Duty for Medical Equipment
The budget also proposes changes to the basic customs duty for X-ray tubes and flat panel detectors used in medical X-ray machines. These adjustments aim to align with the phased manufacturing program and support the Make-in-India initiative.
Increased Funding for AYUSH Ministry
The AYUSH Ministry’s budget saw a significant increase from ₹3,000 crore to ₹3,712.49 crore, a 23.74% hike. This boost reflects the growing importance of integrating traditional medicine systems like Ayurveda, Yoga, and Homeopathy into mainstream healthcare.
Enhanced Healthcare Infrastructure
The budget allocation for schemes under the Department of Health and Family Welfare has been increased to ₹87,656.90 crore. The National Health Mission’s budget rose from ₹31,550.87 crore to ₹36,000 crore. The Pradhan Mantri Jan Arogya Yojna (PM-JAY) saw an increase from ₹6,800 crore to ₹7,300 crore. For the National Tele Mental Health Programme, the allocation increased from ₹65 crore to ₹90 crore.
Himanshu Sikka, Lead – Health at IPE Global, noted, “The limited mention of the health sector in today’s budget speech is not surprising, given the substantial provisions already made in the Interim Budget.”
Dr. Kumardeep Dutta Choudhury, Director of Medical Oncology at Max Hospital Shalimar Bagh, stated, “The exemption of customs duties on cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab will have a profound impact on patients battling cancer.”
The Union Budget 2024 emphasizes improving healthcare accessibility and infrastructure through increased funding and strategic exemptions. While the budget addresses several critical areas, the exclusion of senior citizens’ health cover under Ayushman Bharat-PMJAY stands out as a key unfulfilled promise, reflecting a significant gap in the government’s healthcare strategy.
(With inputs from TOI)
