Finance Minister Nirmala Sitharaman is set to present the first budget of the Modi 3.0 government on July 23. The upcoming budget is anticipated with high expectations not only from the industry and taxpayers but also from the general public. There are calls from many health experts that the budget should have higher GDP allocation for healthcare and advances in digital health infrastructure. While India’s current public healthcare spending remains low with just 1.6 to 1.8 per cent of the Gross Domestic Product (GDP), the experts stressed the need for higher allocation. A higher percentage of GDP allocation to healthcare is obviously a long pending demand.
Over the years, the government has taken many measures towards making healthcare affordable and accessible for the deprived sections of society. However, schemes like Ayushman Bharat are unflinchingly focused on subsidised treatment; the quality aspect is yet largely ignored. There is an urgent need to advance digital health infrastructure, particularly in tier II and III cities and rural areas, to enhance health coverage and support existing facilities. Boosting digital health can play a big role in better health services in villages. There is also a need for an effective universal health care model that can bring out real transformation in the health sector.
The budget should also boost reforms in cancer care by prioritising funding for personalised medicine and immunotherapy. This will make the therapies more accessible to a large number of patients. In the interim budget, in February, the government had encouraged vaccination for girls in the age group of 9 to 14 years for prevention of cervical cancer. Besides, the budget should bring down the cost of vaccinations to prevent cervical cancer. Similarly, there is a need to provide more facilities for manufacturing medical equipment in India. Medical equipment like CT Scans to a large extent, are imported and therefore there is a need for lowering of customs duty on import of medical devices.
Apart from the health sector, some reforms on the taxation side aimed at stimulating economic growth are also required. This includes revisions in tax rates to boost disposable income and stimulate consumption, particularly for lower income brackets. Further, enhancing limits under Section 80C and similar provisions could encourage long-term savings and investment. Simplification of the capital gains tax regime and a framework guiding towards streamlining of GST slabs are also needed.
The forthcoming budget should introduce comprehensive measures to boost employment and enhance workforce capabilities. Economists have suggested the announcement of an employment-linked incentive scheme, the introduction of an urban counterpart of Mahatma Gandhi National Rural Employment Guarantee Act, increased investments in labour skilling programmes and soft infrastructure, and the implementation of targeted policies and support systems to increase female labour force participation. The people have a lot of expectations from
the new budget.
