Budget 2024: Health Allocation Under Modi Government In Last 10 Years (image: x.com/NHM_MP)
India calls for a solid health budget considering the population and disease prevention, highlighting how the COVID-19 pandemic hit the country a few years ago.
As the Modi government gears up to unveil the Union Budget 2024, the tremendous changes the health sector has undergone in the past 10 years need to be looked upon.
From 2014 to the last interim budget, there has been a substantial increase in the government’s budgetary allocation towards enhancing access to healthcare services and infrastructure in India. Two major initiatives propounded by the Modi government in order to advance health services in India are the National Health Mission (NHM) and Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
Also Read | Budget 2024: What Was The Allocation Of Social Schemes In Decade-Long Modi Government
National Health Mission (NHM)
NHM, managed by the Department of Health and Family Welfare, is the largest public health initiative and it receives the majority of the Ministry’s budget. It consists two sub-missions: the National Rural Health Mission (NRHM) and the National Urban Health Mission (NUHM). The primary objective of the initiative is universal access to affordable and superior healthcare services that meet the requirements of the people. Though the budgetary allocation for the NHM has been low over the years, the 2024-25 witnessed a surge in allocation.
Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
AB-PMJAY is another notable initiative of the Modi government. Launched in 2018, it is touted the world’s largest publicly funded health insurance scheme. Currently, it facilitates Rs 5 lakh per family each year for secondary and tertiary care to 12 crore families.
Criticisms In Healthcare Budget Allocation
There is increase in health sector spending from NHM to AB-PMJAY indicating a shift from the universal healthcare approach to insurance-based healthcare. Amulya Nidhi, national convener of Jan Swasthya Abhiyan told IndiaSpend that there is a conscious attempt in progress to revamp the healthcare sector beneficial of large corporations. “A clear inclination towards promoting a market-oriented healthcare system and industry, intertwining health with tourism and market interests,” Nidhi remarks.
There were also criticisms on the minor allocation of expenditure on healthcare as spending on health declined to below 2 per cent of the total expenditure during the past two financial years — 2022-23, and 2023-24.
As per National Health Policy (NHP) 2017, India’s healthcare expenditure should attain 2.5% of GDP by 2024-25. The Economic Survey 2022-23, however, points out that the overall public health expenditure stood at 1.6% of GDP in the actuals of 2020-21, while it is projected to be around 2.1% of GDP in 2022-23 (Budget Estimate). This revealed a gap between the recommended target and the actual estimates.
The foundation of India’s healthcare system majorly rely on primary healthcare, which is essential for achieving the desired health outcomes by 2047. A PRS Legislative Research article (2023) underlined that the healthcare landscape in India needed urgent government attention which include the inadequate provision of primary healthcare infrastructure, a scarcity of personnel in rural regions, and the need for heightened awareness regarding the AB-PMJAY, a vital public health insurance scheme.
Also Read | Budget 2024: Education Allocation Under Modi Government In Last 10 Years
Insufficient investment in public health infrastructure can have adverse effects on healthcare accessibility, thereby impacting health indicators, the Centre for Development Policy and Practice (CDPP) reports.
Interim Health Budget
However, in the interim Health budget, Finance Minister Nirmala Sitharaman had allocated Rs 90,171 crore for healthcare in 2024-25, an increase from the last year’s allocation of Rs 79,221 crore. The allocation of funds for AB-PMJAY was also increased from Rs 7,200 crore to Rs 7,500 crore in 2024-25. Furthermore, there is significant rise in funding for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) from Rs. 2,100 crore to Rs. 4,108 crore, focusing accessible healthcare.
Other key highlights in the interim budget are increased allocations for the Livestock Health and Disease Control Program, the Production Linked Incentive Scheme, and biotechnology research, stressing upon a comprehensive approach to healthcare challenges.
In the interim budget, the finance minister has also focused on preventive healthcare through launching new initiatives like cervical cancer vaccination, maternal and child health integration, and the introduction of the U-WIN platform for improved immunisation management. Besides, it adopted measures such as upgradation of Anganwadi centers, and expansion of medical colleges.
