As we approach the Union Budget 2024-25, it is imperative to address the critical challenges in our healthcare sector.

• • Rationalizing the GST for hospital construction and medical technology procurement can significantly reduce capital expenditure, alleviating the financial burden on patients.
  • Providing tax incentives is crucial. Extending the tax relief period for NABH-accredited hospitals in smaller towns from the current five years to ten years under section 80IB will attract investments and boost infrastructure in Tier-II and III towns. Creating a dedicated fund for subsidised loan with longer tenure will help promoters get cheaper capital. Same has been successfully tried in infrastructure projects in past.
  • Fostering Public-Private Partnerships (PPPs) can effectively utilize existing public infrastructure in rural areas. Establishing a special-purpose vehicle (SPV) for PPPs can attract private sector participation on a win-win basis.
  • Budget must prioritize affordable and accessible healthcare. Standardizing private healthcare costs can ease the financial burden on lower and middle-income families, comprising 31% of our population, ensuring equitable access to medical care. Additionally, including the middle class in schemes like Ayushman Bharat and introducing co-payment strategies can ensure they are adequately insured and can afford quality healthcare.
  • Reducing reliance on medical technology imports is crucial. Increasing investment under the Production-Linked Incentive (PLI) scheme for manufacturing medical devices will meet the surging demand and enhance our self-reliance.
  • Lastly, the overall allocation to healthcare should be increased to 2.5% of the GDP, as previously assured. The current expenditure of 1.8% is insufficient to meet the healthcare needs of our nation.

A holistic budget addressing these concerns will undoubtedly fortify our healthcare infrastructure, paving the way for a healthier and economically robust India.