The Tech Panda asked healthcare experts their expectations from the Union Budget 2022.
Last year, experts in the healthcare industry commended the high capital outlay in the 2021 Union Budget presented by Finance Minister Nirmala Sitharaman.
Apart from increased capital through DFI (Development Financial Institutions), there was an outlay of INR 64,181 crore for the next six years for the Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PM-ASBY). Also, there was a 74% increase in FDI limit in insurance, a budget outlay of INR 2,23,846, a 137% increase from the previous year, and an allotment of INR 35,000 crore for COVID vaccine research.
Read more: Budget 2022 expectations: What’s the industry wish list?
COVID-19 continues to harass economies, with the Omicron variant of the virus causing new havoc. Naturally, there is expectation that the healthcare sector should be the focus of this year’s budget. India is facing a new challenge in the form of Omicron, and many more COVID waves are expected in the coming years, demanding the strengthening of the healthcare infrastructure.
What can we expect from the FM this year?
The Tech Panda asked healthcare experts their expectations from the Union Budget 2022.
Increase Healthcare Expenditure up to 3% of GDP
The most pressing need is a higher healthcare expenditure budget.
Dr. Shuchin Bajaj, Founder & Director, Ujala Cygnus Group of Hospitals hopes this will go up to 3% of GDP as promised by the government.
“As India faces the worst ever health crisis of all times, we hope that COVID-19 will at least provide the silver lining in increasing the healthcare budget. There has never been a greater spotlight on healthcare delivery in various environments.
No election has unfortunately been fought on healthcare as an issue in India yet. But now with the coronavirus pandemic, the focus is only and squarely on healthcare
“No election has unfortunately been fought on healthcare as an issue in India yet. But now with the coronavirus pandemic, the focus is only and squarely on healthcare. I hope that this will lead to an increase in the healthcare budget and various healthcare provisions so that the expenditure spend on health should go up to 3% of the GDP as promised by the government.”
Dr. Shubhang Aggarwal, Director, NHS Hospital, Jalandhar, too expects a special focus on healthcare expenditure.
“We are expecting that the upcoming budget under the leadership of Prime Minister Narendra Modi will have a special focus on increasing the healthcare expenditure substantially more than 2.5% of GDP and extending the National Health Protection Scheme for all when the cases of COVID are again on rise.
Debajit Sensharma, Group CFO, Paras Healthcare, feels the National Health Protection Scheme should be extended to all migrant workers.
“To begin with, we would like to thank the government for the support provided during and ongoing tough times. Going forward, we expect that the government should look at increasing the healthcare expenditure above 2.5% of GDP and extend the National Health Protection Scheme to all migrant workers, in addition to the BPL population.
Dr. Tushar Grover, Medical Director, Vision Eye Centre, New Delhi, says the advent of the Omicron variant of the coronavirus demands this even more.
“With Omicron spreading now and the so-called third wave being finally upon us, healthcare has again become one of the biggest focus areas for governments as well as individuals. As such, the government must raise the healthcare budget considerably at least to the extent that the entire health machinery including our public health systems are prepared to deal with emergency health situations such as the ongoing pandemic efficiently and without much damage to people’s health.”
“In the budget, more funds should be allocated to health expenditure. Incentives should be provided to the private sector so that they can establish Covid Care Centres. A Medical Innovation Fund should be set up to provide capital to companies promoting digital healthcare infrastructure,” says Dr. Ankit Gupta, Managing Director, Park Group of Hospitals.
Dr. Angeli Misra (MD Path), Founder & Director, Lifeline Laboratory, expects increased fund allocation in every aspect of the healthcare sector.
To combat the pandemic crisis, increased fund allocation in every aspect of the healthcare sector, a reduction in GST and import duty for critical care equipment and components… more funding to boost the development of the digital health sector and the production of point-of-care equipment can bring the highest level of quality care to the interiors and remote areas of India
“To combat the pandemic crisis, increased fund allocation in every aspect of the healthcare sector, a reduction in GST and import duty for critical care equipment and components (86% of which are dependent on imports) as an initiative for government support for the medical devices manufacturing industry, more funding to boost the development of the digital health sector and the production of point-of-care equipment can bring the highest level of quality care to the interiors and remote areas of India.”
More Healthcare Power for Tier2-3 Cities
Aggarwal also urges that hospitals need support in the form of subsidised loans and land allocation.
“The Ayushmann scheme is becoming a success but the rates need to be rationalised so more private hospitals adopt it, even if it’s under their CSR activities.”
There is an urgent need to improve healthcare funding through subsidised loans and allocating land for new hospitals especially in tier 2 and tier 3 cities where quality healthcare is still a challenge
“There is an urgent need to improve healthcare funding through subsidised loans and allocating land for new hospitals especially in tier 2 and tier 3 cities where quality healthcare is still a challenge. The use of innovative technologies should be incentivised so that health protection is available and extended to the disadvantaged.”
Sensharma reiterates the same.
“The need of the hour is to improve healthcare funding with subsidized loans, incentivizing CSR investment by making it a tax-deductible expense, and allocating land for new hospitals.
“The government should also look at allocating a budget to include trauma centers in Primary Health Centres (PHCs) and Community Health Centres (CHCs) as trauma systems result in high financial costs.”
There is a need to bridge the urban-rural and big town-small town gap in terms of availability of healthcare infrastructure, equipment and personnel
Grover too stresses the need to be more inclusive in healthcare’s reach.
“There is a need to bridge the urban-rural and big town-small town gap in terms of availability of healthcare infrastructure, equipment and personnel. Healthcare services, both public and private sectors need to be strengthened tremendously in rural areas and small towns.”
Public-Private Partnerships for Genome Mapping Projects
Sensharma also emphasizes that genome mapping can benefit the nation’s health issues in the long term.
It is imperative for the government to get genome mapping done, which will assist in collecting the much-needed data to discover cures for complex conditions. In order to achieve the same, the government should promote public-private partnerships for genome mapping projects
“Our country has the youngest workforce, but with dropping fertility rates and increasing mutations, there will be a huge spike in healthcare expenses over the next couple of decades. The incidence of lifestyle diseases is doubling every 10 years. Therefore, it is imperative for the government to get genome mapping done, which will assist in collecting the much-needed data to discover cures for complex conditions. In order to achieve the same, the government should promote public-private partnerships for genome mapping projects.”
Grover too emphasises the need for increasing genetic research.
“Given the rising frequency of infectious diseases, the government must invest enough through this budget into genetic research, vaccine and immunization research apart from other avenues of research including epidemiology and biotechnology.”
Tax Cuts on Drugs & Funds Received
Sensharma also drives home the point that drugs, especially, life-saving drugs need tax cuts.
“Another important aspect for the government to consider is including all the life-saving drugs in the generic category and providing tax cuts on these drugs. However, providing adequate funding for the healthcare sector is needed at this hour, as it will have a substantial impact on the whole economy.”
Grover too supports this for India to become a self reliant healthcare power.
“The private sector, whether it is the healthcare providers or the pharma sector, must be given policy and economic support in the form of tax rebate, easy loans, utility payment relaxations and exemptions in order for them to grow themselves and make India a self-reliant healthcare power while bolstering the health defences of our people.”
The government should support digital-health startups who are investing heavily in infrastructure by relaxing regulations and providing assistance or exemptions from some mandated compliance requirements
“As Indian tech-driven enterprises in the healthcare field are constantly developing and curating solutions to support India’s healthcare infrastructure, the government should consider tax exemptions on funds received and a GST reduction to 3% from the existing 18%. The government should support digital-health startups who are investing heavily in infrastructure by relaxing regulations and providing assistance or exemptions from some mandated compliance requirements,” Rohan Verma, Co-founder and CEO, Breathe Well-being, a healthtech digital therapeutics company focused on Type 2 Diabetes Reversal and management, says.
Increased Budget Allocation for National Mental Health Program
Dr. Prakriti Poddar, Managing Trustee, Poddar Foundation, stresses a higher budget for mental health.
“India’s mental healthcare system had several gaps even before the pandemic, and the situation has been exacerbated by the outbreak of COVID-19. In the last budget i.e., the Union Budget 2021-22, the budget for the National Mental Health Program (NMHP) remained the same as last year – INR 40 crore.
“Proposing only INR 40 crore for NMHP will leave the country unprepared and unable to deal with the requirements of the population, especially with the increasing mental health impact of the COVID-19 pandemic.
The government must set up counselling centres, drive aggressive promotional health campaigns encouraging people to consult with psychologists and psychiatrists as well as invest in community health physicians and public health professionals to strengthen mental health epidemiology and engagement in preventive care
“While increasing the budget allocation for NMHP is the need of the hour, other overlapping and related sectors such as social welfare schemes (example – NREGA, one stop centres for survivors of domestic violence, scheme for the welfare of persons with disabilities) also require additional funding.
“It is not just about increasing budgets, unless it is accompanied by engagement with grass-root level mental healthcare. The government must set up counselling centres, drive aggressive promotional health campaigns encouraging people to consult with psychologists and psychiatrists as well as invest in community health physicians and public health professionals to strengthen mental health epidemiology and engagement in preventive care.
“The government also needs to set up bodies that recognise community level organisations and NGOs working in the mental health space and provide funds to them so that they can continue their work.”
Encourage Medical Tourism
Gupta says India can be attractive as a medical tourism destination.
“Many startups are utilizing Artificial Intelligence and Machine Learning to provide detailed reports to patients regarding medical conditions. India is also a popular medical tourism destination due to the availability of skilled labour.
The government should ease visa restrictions and create more green corridors in order to promote medical tourism
“Hence, the government should ease visa restrictions and create more green corridors in order to promote medical tourism. We hope that the upcoming budget will serve as a source of motivation for the entire sector, fostering new innovations and development.”
Special Allocation for Communicable Disease Surveillance
KR Raghunath, Senior Chairman, Jindal Naturecure Institute says in the light of the COVID pandemic, he expects an allocation only for strengthening communicable disease surveillance.
“The need of the hour is to spend more on creating awareness about why preventive healthcare is important, more so with the ongoing COVID-19 pandemic. During the pandemic, PM Modi has given the much-needed push to the AYUSH sector as he encouraged India’s world-class R&D enablement and manufacturing capabilities. We are looking forward to more promising announcements from Budget 2022.
The need of the hour is to spend more on creating awareness about why preventive healthcare is important, more so with the ongoing COVID-19 pandemic
“Even though COVID is a communicable disease, its worst effects are visible in those with non-communicable diseases, cardiovascular diseases, diabetes, hypertension, obesity and chronic respiratory diseases. Therefore, an allocation only for strengthening communicable disease surveillance is a sub-optimal solution.”
Upskilling Healthcare Workers & Youth
Keeping in mind the need for healthcare workers, Raghunath also stressed the need for upskilling of healthcare workers.
“The budget for upskilling of the youth to become Preventive Health Coaches is also required since this will address the problem of unemployment and build on PM Modi’s Atmanirbhar mission.
“We need to consider coming out of this pandemic as a healthier and fitter country. Apart from yoga, the government should promote naturopathy, make it a part of school and college curriculums, and set up a committee to introduce naturopathy practices in universities.
The budget for upskilling of the youth to become Preventive Health Coaches is also required since this will address the problem of unemployment and build on PM Modi’s Atmanirbhar mission
“Standardizing naturopathy practice is critical as it will enable us to lay down strict standards that have to be adhered to by all Naturopaths and conducting mass awareness campaigns to educate the masses is the right way forward.”
Dr. Misra too stressed this point.
“The establishment of more medical education institutions and imparting of advanced training to enhance the skills of healthcare workers is of considerable significance and the need of the hour.”
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