Introduction
The Union Budget for the year 2023-24, was presented by Union Minister of Finance Shrimati Nirmala Sitharaman, on the 1st of February, 2023. The budget was touted as the first budget of the ‘Amrit Kaal’, by the Central Government, in furtherance of the aim embraced by the Union Government to propel India’s growth to such an extent that it can be classified as a developed country in the next quarter of a decade.[1] However, the budget for 2023-24 had no major announcements in tow for the healthcare sector.[2]
Number Decoding- The Quantum of Allocation to the Healthcare Sector
It was announced by Union Minister of Finance Nirmala Sitharaman that the healthcare sector has been allocated a whooping ? 89,155 crores in the Union Budget 2023-24, which is a hike of around 13 per cent over ? 79,145 crores allocated in 2022-23, thus affirming the need for higher expenditure towards the healthcare sector in the Indian Context. Further, the budgetary allocation for the AYUSH Ministry has been increased from ?, 2,845.75 crore (2022-23) to ? 3,647.50 crores, which is a 28 per cent increase. Out of ? 89,155 crores allotted in totality, ? 86,175 crores has been allocated to the Department of Health and Family Welfare, while ? 2,980 crores have been allotted to the Department of Health Research.[3]
Key Highlights –Healthcare Sector
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Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)- The allocated funds under PMSSY witnessed a steep decrease of 2/3rd of the previously allocated funds in the budget of 2022-23. The reallocation of the balance amount in the establishment of the Institute of Excellence, AIIMS, with sanction for 22 campuses, has received a warm response.
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Human Resources for Medical & Health Education- Another field that logged in a significant decrease in the quantum of allocation is the Human Resources for Medical & Health Education, which received ? 6500 crores, a decrease of ? 1000 crore from the previous budget.
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Impetus on Development of Nursing Services- Contrary to the decreased abovementioned allocations towards the field of Human Resources for Medical & Health Education, there was an increase by 2/3rd of the previously allocated funds in the budget of 2022-23, to the Development of Nursing Services, to buttress and strengthen the Nursing Sector pan-India. Also, the impetus has been laid on private sector contribution and participation in the aforementioned sector.
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Allocation to ICMR- As a component of budgetary allocation towards the Department of Health Research, ? 2,360 cr. out of a total of ? 2,980 cr. was allocated to the Indian Council of Medical Research (ICMR), totalling an increase of 7.4 per cent from last year’s budget of 2022-23. Furthermore, the initiative of making select ICMR labs to be made available for research is expected to encourage collaborative research and innovation, in the long run.
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COVID-19 Insurance under PM Garib Kalyan Package-
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The Budgetary Allocation for insurance against COVID-19 for healthcare workers under the schemes under Pradhan Mantri Garib Kalyan Package has dropped steeply from ? 226 crores in 2022-23 to only ? 0.01 crore in 2023-24, almost nullifying the allocations to a diminutive amount.
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National Centre for Disease Control (NCDC)- Also, there was a decrease of 23 per cent in the allocation for all the schemes for the establishment & strengthening of NCDC Branches. Similarly, no amount was allocated for blood transfusion services under the 2023-24 budgetary year as compared to ? 404 crores in 2022-23.[4]
Analysis of Budget 2023-24
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The first aspect to be understood is the implications associated with the increased, albeit marginal, allocations made towards the healthcare and medical sector. Medical Experts & Doctors welcomed the generous allocations made towards the domain of setting up institutes of medical studies and nursing colleges, stating that such allocations shall ostensibly provide a strong impetus towards the healthcare ecosystem as a whole.[5]
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Secondly, the nature of the budget is futuristic as well as forward-thinking with an intent to analyze the long-term effects of allocations towards medical research, and the budget will eventually pave the way for the fruition of efforts towards Universal Health Coverage, in the Indian context, which at present, is lacking.[6]
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Further, the efforts made to eliminate Sickle Cell Anaemia, according to Hon’ble Minister Nirmala Sitharaman will pave the way for a generation of facilities for universal screening, as well as increase awareness towards the side effects of Sickle Cell Anaemia within vulnerable groups as well as groups with increased propensity to be afflicted by the same. The efforts towards elimination of sickle cell anaemia by the year 2047 were also welcomed by leading medical experts, with Dr Ashutosh Raghuvasnhi, MD & CEO, Fortis Healthcare Limited, stating that the initiative will benefit a large section of the population in the long run.[7]
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Further, the increased allocation of funding for the healthcare sector will also enable the Indian Council of Medical Research (ICMR) to enhance its facilities. This betterment of facilities will enable public vis-à-vis private medical college stakeholders and students to undertake research within the facilities themselves and also will offer access to the private sector research and development teams.
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Access by these diverse teams will encourage more collaborative research and innovation in healthcare. This indicates the budget’s sharp focus towards the domain of medical research as well as collaborative research, as well as research and development, which are essential for the advancement of the medical field.[8]
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The National Health Mission (NHM) budget, which combines the National Rural Health Mission (NRHM) and National Urban Health Mission (NUHM) into one programme, also decreased from Rs 37,159 crore the previous year to Rs 36,785 crore this year. The NHM is arguably one of the largest umbrella schemes of the health ministry and aims to support a variety of verticals, including the health of women and children.[9]
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The government's acknowledgement of the present technical breakthroughs in healthcare is shown by the budget's emphasis on pharmaceutical innovation. According to the finance minister, the government would launch a new initiative to support pharmaceutical innovation and research. The government will also encourage business players to spend money on R&D in the designated priority fields, which include cutting-edge medical technology.[10]
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According to a document released by the Ministry of Finance, Government of India, entitled, ‘Outcome Budget’ 2023-24[11], in February 2023, according to the financial outlay presented for 2023-24, the measurable outcomes laid down stipulate efficiency of the outcome of the budgetary allocations. This document also promotes transparency and efficiency in understanding the government’s development-based agenda. However, the practical utility of the budget is yet to be seen.
Conclusion
Through efficient financial allocations and encouraging cooperation, the Indian healthcare sector has kept expanding at a significant rate. The government's focus on two key factors for better healthcare is highlighted in the 2023–24 budget: expanding the number of qualified medical personnel and funding R&D. Additionally, allocations have increased significantly, demonstrating the commitment to a more effective healthcare system.
Even though the department's appropriations increased slightly, after accounting for inflation, they do not amount to much. The revised budget estimates for the previous year were similarly noted by experts to be less than the original amount. The budgeted estimate was lower than the revised estimate for the first time this year, according to a review of the budgets for the five financial years before this one. However, the long-term impact of the budget is yet to be ascertained, so it can be concluded that the allocations made towards the healthcare sector in 2023-24 are a welcome step.[12]
Stable URL- https://www.wionews.com/business-economy/union-budget-2023-24-heres-what-healthcare-sector-got-from-the-budget-55805
Stable URL- https://www.financialexpress.com/budget/budget-2023-no-major-announcements-on-health-front-allocations-increase-by-meagre-12-per-cent-2969712/
Stable URL- https://www.wionews.com/business-economy/union-budget-2023-24-heres-what-healthcare-sector-got-from-the-budget-55805
Stable URL- https://www.expresshealthcare.in/budget-2023/indian-union-budget-2023-24-key-announcements-for-healthcare-sector/438026/
Stable URL- https://timesofindia.indiatimes.com/business/budget/budget-2023-24-experts-welcome-increased-allocation-for-health-sector/articleshow/97532938.cms?from=md
Ibid.
Supra Note 5.
Stable URL- https://www.hindustantimes.com/brand-stories/union-budget-2023-24-transformational-for-healthcare-sector-101676024724734.html
Stable URL- https://cprindia.org/wp-content/uploads/2021/12/NHM_2021_22.pdf
Ibid.
Stable URL- https://www.indiabudget.gov.in/doc/OutcomeBudgetE2023_2024.pd
Stable URL- https://thewire.in/health/budget-2023-health-department-analysis