With no increase in allocation for healthcare, the Union Budget 2015 has been disappointing for many in the sector.
“The allocated healthcare budget for this year is about Rs. 33,150 crore. In 2014-15, the budget was Rs. 39,238 crore, which was slashed by 20 per cent in December. This healthcare budget is the lowest since 2012-13. It does not send out the right message at all,” said Ameera Shah, CEO of Metropolis Healthcare, in a statement.
However, there have been a few welcome measures. With Tamil Nadu, and Chennai in particular, being a hub for medical tourism, the visa-on-arrival facility for 150 additional countries, in a phased manner, has been seen as a move in the right direction.
“This will go a long way in facilitating medical tourism, which is a growth industry that showcases India’s world-class health facilities while contributing to foreign exchange,” said Suneeta Reddy, managing director, Apollo Hospitals. Chennai’s medical tourism sector is expected to be worth about Rs. 9,500 crore by 2015, according to The Associated Chambers of Commerce and Industry of India.
Other moves that have been welcomed include the increase in health insurance premium exemption from Rs. 15,000 to Rs. 25,000, and accident insurance of Rs. 2 lakh for a premium of Rs. 12 per year for the poor and underprivileged. “These measures will encourage more people to seek health insurance coverage and will be very helpful,” said P.V.A. Mohandas, founder, MIOT Hospitals.
Spending on healthcare is believed to be one of the primary causes of debt in India. Out-of-pocket expenditure on health is estimated to be around 70 per cent. Tobacco cessation, too, may make some headway with the excise duty on cigarettes being increased.
Similar increases are proposed on cigars, cheroots and cigarillos. The excise duty on cut tobacco is also being increased from Rs. 60 per kg to Rs. 70 per kg.
The reduction in excise duty — from 24 per cent to 12.5 per cent — on chassis for ambulances will attract more investment leading to improved pre-hospital care, said a GVK-EMRI official.
On the whole, however, more needs to be done in the areas of preventive healthcare, and physical and educational infrastructure to support the health sector. Also, it must be ensured that healthcare funds are spent in the right areas, the experts said.
