The budgeted expenditure on health was approximately 2.1 per cent of GDP in the budget for FY 2022-23. This fell short of the target set in National Health Policy, 2017 which aims to attain universal health coverage and provide affordable, high-quality healthcare services to all by increasing public health expenditure to 2.5 per cent of GDP by 2025. Thus, there is an expectation of further augmented budgetary allocations to meet these targets.

The budget is also anticipated to emphasize on integrating technologies, such as AI, telemedicine, and blockchain, into India’s healthcare infrastructure. This integration is not just a technological upgrade but a strategic move towards enhancing healthcare delivery, efficiency and accessibility. The Ayushman Bharat Digital Mission (ABDM) is a prime example of this technological embrace, aiming to consolidate health records digitally for over 1.3 billion Indians. The ABDM saw a significant budget increase of 144 per cent in the budget for FY 2023-24. This signifies the government’s intent to enhance digital infrastructure and build a more connected and efficient healthcare system, enabling seamless access to medical services and data, thereby transforming the face of healthcare delivery in India. Expectations are that further increase in the allocation may happen in this year’s budget.

Initiatives like Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY) and the National Health Mission, which were allocated a budget of Rs7,200 crore and Rs29,086 crore in FY 2023-24, respectively, have been instrumental in the government’s efforts to provide free health coverage and achieve the Sustainable Development Goal Target 3.8 of universal health coverage. The upcoming budget is expected to further these efforts by providing additional budgetary allocation.

The budget for FY 2023-24 allocated merely 0.01 per cent (amounting to Rs 2,980 crore) of India’s GDP to the Department of Health Research. This figure starkly contrasts with the recommendation for increasing allocation to 0.1 per cent of GDP by 2025-26 made in the “144th Report on Demands for Grants 2023-24 (Demand No. 47) of the Department of Health Research” by the Department-related Parliamentary Standing Committee on Health and Family Welfare. This shortfall highlights the critical underinvestment in health research infrastructure thereby hindering India’s ability to manage health crises effectively and limiting advancements in medical research. Substantial increases in funding are necessary to strengthen health research and prepare for future healthcare challenges.

This article was originally published in Firstspot on 31 January 2024 Co-written by: Arvind Sharma, Partners; Vedant Kashyap, Associate. Click here for original article

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