The Union Budget 2024-25 has seen a 12.5% increase in the health budget, rising to ₹89,287 crore. This increase, along with specific exemptions and reductions in customs duties on medical supplies, has been welcomed by industry stakeholders. However, concerns remain as health was not highlighted as a priority in the Finance Minister’s speech, indicating a need for a more comprehensive approach to address sectoral challenges.
Budget Highlights and Industry Reactions
Increase in Health Budget Allocation
The 12.5% increase in the health budget over the previous year has been positively received. Dr. Sanjeev Singh, Medical Director of Amrita Hospital, commented, “The exemption of customs duties on three cancer treatment medicines is a significant step towards making life-saving treatments more affordable for patients. Additionally, the proposed changes in basic customs duties for X-ray tubes and flat panel detectors will bolster the domestic manufacturing of essential medical equipment, ensuring better accessibility and reduced costs.”
Exemption and Reduction of Customs Duties
The Finance Minister announced the exemption of three cancer drugs from customs duty and the reduction in basic customs duty on the import of X-ray tubes and flat panel detectors. Behram Khodaiji, CEO of Ruby Hall Clinic, praised these changes, stating, “Synchronising these changes with domestic capacity addition will bolster our diagnostic capabilities and promote the growth of the domestic medical device industry.“
Positive Steps but Concerns Remain
Healthcare Infrastructure and Accessibility
Dr. Minnie Bodhanwala, CEO of Wadia Hospitals, expressed relief and hope due to the budget’s focus on healthcare, particularly the allocation of ₹89,287 crore and the customs duty exemptions on cancer medications. “While the budget could have done more to address the critical issue of funding for healthcare, the increased allocation and reduced custom duty on cancer medicines are steps in the right direction,” she said.
She also highlighted the promotion of public-private partnerships, domestic manufacturing through the PLI scheme worth ₹2,143 crore, and the expansion of the Ayushman Bharat scheme with an increased allocation of ₹7,500 crore as significant positive measures. However, she stressed the need for sustained efforts and investments to address the complex challenges facing the sector.
Gaps in Addressing Broader Challenges
Dr. Aashish Chaudhry, Managing Director of Aakash Healthcare, welcomed the government’s move to open a new medical college in Bihar but expressed disappointment that health was not one of the main nine priorities highlighted by the Finance Minister. “Over ₹3 lakh crore is allocated for women’s development, and the PMGKAY scheme, which helps 80 crore people, is extended for five more years. However, health was not one of the nine main priorities announced by FM Sitharaman,” he noted.
Dr. Chaudhry further commented, “Some think the budget could have better tackled the broader challenges in healthcare with a more complete plan. By not making health one of its top nine priorities, it misses the chance to fully address the sector’s broader challenges and opportunities.”
The Union Budget 2024-25 has introduced several positive measures for the healthcare sector, including increased budget allocation, customs duty exemptions on cancer drugs, and reduced duties on X-ray equipment components. These steps are aimed at enhancing affordability, promoting domestic production, and improving healthcare infrastructure. However, the lack of emphasis on health as a top priority in the Finance Minister’s speech has raised concerns about the government’s commitment to addressing the broader challenges in the sector.
Overall, while the budget has been welcomed for its positive steps towards improving healthcare, stakeholders hope for continued efforts to make healthcare a fundamental right rather than a privilege, addressing both immediate needs and long-term goals for the sector.
Join TISHHA.
