Ayushman Bharat, Medical Infra, Research & Ayush: Budget Booster Shot For Health Initiatives

From bolstering insurance, enhancing medical infrastructure to supporting traditional health practices, advancing medical research and pharmaceuticals, the budget has given moderate boosts to several key health initiatives.

While the Modi government has allocated Rs 89,287 crore towards the healthcare sector, which is marginally higher than the original budget allocation estimate of Rs 89,155 crore last year, there are certain schemes and segments which have received higher allocations.

The central government’s flagship scheme, Ayushman Bharat, has been allocated Rs 7,300 crore, marking a Rs 500-crore increase from the revised estimate of Rs 6,800 crore in the previous fiscal year.

Officially known as the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), the scheme is gearing for an extension to cover septuagenarians and above – the move that was originally outlined in Prime Minister Narendra Modi’s election manifesto and subsequently announced by President Droupadi Murmu.

Also, the government had earlier announced plans to bring ASHA and Anganwadi workers under the scheme’s ambit in the interim budget announced earlier this year.

Officially known as the Pradhan Mantri Jan Arogya Yojana (PMJAY), the world’s largest publicly funded health insurance scheme covers around 55 crore beneficiaries from the bottom of the population — almost 40 per cent of India’s population. The scheme offers beneficiaries coverage of Rs 5 lakh annually per family for secondary and tertiary care hospitalisation at both public and private-empanelled healthcare providers.

The budget for the scheme has been consistently moving northwards. The budget allocated for the implementation of AB-PMJAY for the financial year 2018-19 stood at Rs 2,400 crore which spiralled to Rs 6,400 crore and Rs 6,400 crore, respectively in 2019-20 and 2020-21, amid the Covid-19 outbreak.

BUDGET BOOST FOR SCHEMES AND DEPARTMENTS

From the Health Ministry to the Department of Pharmaceuticals, the budget has given a boost to several health schemes and departments.

From Rs 2100 crore (from revised estimates of 2023-24), the budget has allocated Rs 3,200 crore for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) – the scheme that was announced to fill critical gaps in health infrastructure, surveillance and health research. The scheme has received an additional allocation of Rs 1,100 crore – a jump of over 50%.

Similarly, budget allocation for the National Ayush Mission has got a boost of more than 40%. From the estimated budget of Rs 815 crore, it has been allotted Rs 1,200 crore.

Overall, the Ministry of Health and Family Welfare has seen a 12.9% increase in its outlay for 2024-25, with the allocation of Rs 90,958 crore – up from Rs 80,517.62 crore in the revised estimates for the health ministry in 2023-24.

The budgetary estimate includes the combined outlay for the two departments under the health ministry – the Department of Health and Family Welfare and the Department of Health Research, which includes the country’s apex medical research body, the Indian Council of Medical Research (ICMR).

Moreover, the Department of Pharmaceuticals, which operates under the Ministry of Chemicals and Fertilisers and is responsible for making policies and deciding prices of medicines in India, witnessed a substantial 51.6% surge in its budget allocation for the 2024-25 fiscal year, amounting to Rs 4,090 crore, up from Rs 2,697 crore based on the revised estimates of 2023-24.

FEWER SECTOR-SPECIFIC ANNOUNCEMENTS, BUT KEEPING SECTOR IN RACE: EXPERTS

According to Shamsher Dewan, senior vice-president and group head – corporate ratings at credit rating agency ICRA Limited, “Budgetary allocation towards healthcare increased by 13.0%. Given the backdrop of under-penetrated healthcare infrastructure in the country, increased budgetary allocation towards the healthcare sector is a welcome move.”

“Around 7.4% increase in allocation towards the Ayushman Bharat scheme reaffirms the government’s focus on national health protection and is expected to increase patient footfalls for healthcare companies.”

Shuchi Ray, partner at Deloitte India, welcomed the “specific announcements pertaining to the sector”, listing the exemption of three cancer medicines and X-ray tubes and flat panel detectors, etc. from customs duty. “While healthcare has not found its place in the budget priorities, however, it has clearly been integrated with most of the priorities announced. In pursuance of priority relating to manufacturing and services, the development of digital public infrastructure applications is proposed in various areas including healthcare…”

“While higher allocation to the sector and certain sector-specific announcements could have helped, still, the integration of healthcare with most of the priorities, has still kept the sector in the race,” Ray said.

Also, experts believe that operationalizing the Anusandhan National Research Fund will support basic research and prototype development in healthcare, fostering the creation of innovative treatments and advanced diagnostic techniques.