InvestorQ : Why is the government looking to double its healthcare outlay in this Union Budget?
vaishnavi mhatre made post

Why is the government looking to double its healthcare outlay in this Union Budget?

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vidhya Laxmi answered.
4 months ago
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It is not only good but it is long overdue. As a percentage of GDP, India was long spending too little on healthcare and this is the opportunity to correct that imbalance. Now it is being reported that the government could look at doubling its allocation to healthcare in the Union Budget 2020-21, which will be presented on 01-Feb.

This will be effectively instrumental in raising the allocation to healthcare from 1.30% of GDP to 2.60% of GDP. India, at least, now gets closer to what most of the emerging economies are spending on healthcare as a percentage of GDP. The COVID pandemic brutally exposed India’s shortcomings on the healthcare infrastructure front.

In the last budget, the allocation to healthcare was to the tune of Rs.62,000 crore. This allocation is likely to be raised to Rs.130,000 crore. This would specifically include critical investments in medical hardware, software, technology and networks. In fact, the vaccine distribution could be used as an excuse for pushing the healthcare agenda.

Other countries like Sri Lanka and Bhutan, which are much smaller, have done extremely well on the healthcare front. The ultimate goal for the Indian government will be expand the allocation to healthcare to around 4% of GDP. This is the median healthcare allocation made by most of the emerging economies in the world on an average. 

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