Union Budget 2024: What can the government do to strengthen the healthcare sector?

As the Indian government prepares to announce its Budget 2024, there is growing expectation that it will focus on the healthcare sector.

With the deadly pandemic that has gripped the world, the importance of a solid healthcare infrastructure has become clear. Experts are banking on a significant increase in budget allocations to plug the existing gaps and improve the quality of healthcare in India.

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Dr Azad Moopen, founder and CEO of Aster DM Healthcare, expressed optimism about the potential increase in healthcare funding.

He said, “India has been steadily increasing its investment in public health infrastructure and we are hopeful of seeing a significant increase in the budget allocation for the healthcare sector to at least 5% of GDP. This is crucial to address the existing gaps and improve the overall quality of healthcare delivery in India.”

Reform of medical education and research

Dr. Moopen stressed the need for comprehensive reforms in medical education to meet contemporary healthcare needs. The last budget announced the establishment of nursing schools alongside medical schools, but there is still an urgent need for further development.

He suggested, “This requires development of medical schools, nursing schools and paramedical schools in all the 500 district hospitals across the country.”

He also stressed the importance of fostering a robust ecosystem for private sector participation in healthcare, which plays a key role in complementing government efforts. Initiatives to improve medical education and skill development are essential to empowering healthcare workers and improving service delivery.

Technological progress and qualified personnel

The pandemic has accelerated the development of the healthcare sector, which has created the need for extensive education and development of future specialists.

Dr. Moopen stressed that significant financial investments are necessary to implement advanced technology and support research and innovation.

“A significant budget for setting up Central Medical Research and Innovation Institutes in every state would be a great starting point. This initiative would address issues like accessibility, equity and cost of healthcare,” he said. He also suggested setting up a Central Digital Health and AI University to leverage technological innovations in healthcare and a dedicated university for NRI students.

Concessions for Non-Residents of India

Dr. Moopen also stressed the need for concessions for NRIs living abroad, such as reduction in TDS for those with source of income in India and affordable airfare to SAARC and GCC countries. These measures would support increasing trade and business cooperation between the regions and implementation of a health program for NRIs returning to India for retirement.

Addressing the challenges of non-communicable diseases (NCDs)

Dr Dharmesh Shah, Founder and Director, Holistica World, highlighted the crucial issue of Non-Communicable Diseases (NCDs) in the upcoming Budget.

“Non-communicable diseases, as highlighted in the Sustainable Development Goals (SDGs), especially the third goal related to health and well-being, pose a serious threat to society. If left unchecked, NCDs can push humanity into poverty, deepening the burden on populous countries like ours,” he said.

Dr Shah emphasised the importance of early intervention and natural therapies to address the root causes of NCDs. “The budget should prioritise NCDs as they significantly increase individual and family expenditure. The government’s efforts to combat diabetes and hypertension are commendable but there is a need to give more emphasis on early intervention and natural therapies as recommended by the UN and WHO,” he added.

Strengthening emergency services

Pranav Bajaj, co-founder of Medulance Healthcare, stressed the need for strategic investment in emergency services. “The upcoming budget is a key opportunity to strengthen India’s emergency services. We urge the government to prioritize strategic investments in these areas to improve response time and overall efficiency of emergency care,” he said.

Bajaj has proposed a revision of the GST structure for ambulance procurement. “Currently subject to 28% GST, we propose a significant reduction to 0%. This move will not only ease the financial constraints but also encourage nationwide improvement of ambulance fleets, contributing to faster and more effective response in emergency situations,” he explained.

“Budget 2024 sets a positive trajectory for the healthcare sector. We look forward to working with the government to realise our shared vision of a healthier and more resilient India,” said Dr Moopen.