Poor budgetary allocation to healthcare sector dovetails with Modi govt’s preoccupation with corporatisation

We have faced a serious health crisis in the last two years due to the COVID pandemic which has cost dearly precious lives even as it pushed millions of people into joblessness, adding to the already existing poverty.

Large segments of population could not get required treatment for COVID due to lack of preparedness on the part of the government. They were unable to go to the private hospitals due to exorbitant cost.

Meanwhile, patients suffering from other diseases, both communicable and non-communicable, also suffered. While the affluent section of the society could get treatment, the lower-income group, who are largely dependent on the State for their health needs, were deprived of the treatment for diseases like tuberculosis, dengue, malaria, diarrhoea and even vaccination for the children.

The WHO has pointed out time and again that to meet health needs, it is important that public health spending should be 5% of the GDP. But unfortunately, public health expenditure in our country has been hovering around 1.1% for several years.

According to the Oxfam’s ‘Commitment to reducing inequality report 2020’, India ranks 154th in health spending, 5th from the bottom. It was therefore expected that the government would be serious in budgetary allocation for health. But it was not to be.

The budgetary allocation to health in this year’s Budget is Rs. 82600 crore out of total fiscal budget of Rs. 39.45 lakh crore. This amounts to 2.07% of the total Budget. Last year, this allocation was 2.04%. This miniscule increase is not even sufficient to meet the inflation. As percentage of the GDP, the allocation to health budget has in fact come down.

This is a serious issue which concerns the health of our people.

There has been special mention of mental health. It is true that mental health has always been a serious issue. Children who lost school days during the pandemic have been the worst sufferers. The digital solution offered may not serve the desired purpose. A meagre increase of budget allocation from Rs. 597 crore to Rs. 610 crore is too low.

Similarly, a minor increase from Rs. 2663 crore to Rs. 3200 on health research is a pittance. Faced with several health problems, we need to develop our own innovative methods through research and development. This needs more monetary allocation.

Various studies have concluded that to ensure comprehensive primary healthcare, there is need to enhance public health spending on health to a minimum of 5% of the GDP. The government had committed that it will spend 2.5 % of the GDP on health. This calls for increase in budgetary spending to Rs 3.5 lakh crore.

Much has been talked about digitalization of healthcare system. This would mean maintaining digital record of the people. But this is not the priority. What is needed is creation of trained manpower in health sector at all levels. Health is a multi-sectoral issue which requires better nutrition, education, maternal and child healthcare, job opportunities, better work environment, housing, clean drinking water supply, sewerage facilities etc.

With food security being undermined and spending on schemes like MGNREGA reduced, it would be naïve to expect health of the people to improve.

As for COVID vaccination, our record is less than global average of 52.56 persons fully vaccinated per 100 people. Our number stands at 50.23 whereas China has vaccinated 83.27 persons fully per 100 population. Many more countries have done much better than us.

The Budget has completely failed to meet the expectations for taking a direction towards comprehensive universal healthcare. Rather, there seems to be a hidden agenda of corporate push in the healthcare sector through so-called PPP mode which is harped upon so often by the present dispensation in power.

(IPA Service)

Views are personal