India’s Union Budget 2024: Hits and misses for health sector

India’s Union Budget 2024: Hits and misses for health sector

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Union Budget

Initiatives focused on health infrastructure development, digital health and mental health face reductions, even as overall budgetary allocation for the Union Health Ministry marks a 12.59 per cent increase. 

India’s Union Budget for 2024-25, presented earlier this week, proposed notable budgetary allocations for healthcare programmes, along with tax exemptions for critical drugs and medical devices. But is that what the doctor ordered? 

First Check examines the hits and misses of India’s latest budget from a healthcare perspective:

Brass tacks :

  1. The budget allocation for the Union Health Ministry stands at Rs 90,658.63 crore, marking a 12.59 per cent increase from the revised estimate of Rs 80,517.62 crore in 2023-2024.
  2. A significant portion of this allocation – Rs 87,656.90 crore – is earmarked for initiatives by the Department of Health and Family Welfare. 
  3. The Department of Health Research is allocated Rs 3,301.73 crore for medical research and development.

Laudable measures 

  1. The exemption of customs duties on three critical cancer medications – Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, commonly prescribed for breast cancer, lung cancer and bladder cancer respectively – will help alleviate the financial burden on patients battling cancer.
  2. Changes in the Basic Customs Duty (BCD) on X-ray tubes and flat panel detectors used in medical X-ray machines will help strengthen the domestic production capacity.

Mixed bag:

  1. The National Health Mission (NHM) is allocated Rs 36,000 crore – an increase from Rs 29,000 crore last year – boosting primary healthcare services. 
  2. The government's flagship universal health coverage scheme, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, sees an increased allocation of Rs 7,300 crore from Rs 6,800 crore last year. It is aimed at providing health coverage for those with the least access to healthcare services, specifically the poorest 40 per cent of the population. 
  3. Infrastructure-focused initiatives face reductions, with the PM-Ayushman Bharat Health Infrastructure Mission’s allocation dropping to Rs 3,200 crore from Rs 4,200 crore, and the PM Swasthya Suraksha Yojana seeing a significant decrease to Rs 2,200 crore from Rs 3,365 crore. 
  4. Digital health initiatives also experience cuts, with the Ayushman Bharat Digital Mission’s funds reduced to Rs 200 crore from Rs 341 crore. 

    Elephant in the room 

    Despite the increasing conversations about the importance of mental health, especially in the post-pandemic era, the budget for the National Tele Mental Health Programme has been reduced to Rs 90 crore from Rs 133.7 crore in the previous year. This 32.7 per cent reduction raises concerns about the government’s ability to address the rising mental health challenges effectively. 

    The programme, which operates under a network of 23 mental health centers of excellence under the National Institute of Mental Health and Neurosciences (NIMHANS), was originally announced in the 2022 Budget in response to the pandemic challenges. Its aim was to improve access to quality mental health counselling and care services in the country.

    In Finance Minister Nirmala Sitharaman’s attempt to balance immediate healthcare needs with fiscal constraints, there are key concerns that are not adequately addressed. If accessible and affordable healthcare has to be a right for all and not a privilege for the select few, we need to address these urgently.

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