Budget 2021 Expectations: Lesson from Covid, Modi govt must spend more on healthcare, medical research

By: |
New Delhi | December 24, 2020 3:05 PM

Union Budget 2021 Expectations for Health: As India faces the worst ever health crisis of all times, we hope that COVID-19 will at least provide the silver lining in increasing the healthcare budget.

Health Budget 2021 Expectations, Budget 2021 Expectations for HealthBudget 2021 Expectations: The onslaught of Covid-19 has duly woken up the health authorities to the urgent need to raise the allocation for health as a proportion of GDP. (Image courtesy Reuters)

Union Budget 2021-22 Expectations for Health: Along with the world, India has been going through a health crisis due to the unprecedented Covid pandemic. The highly contagious disease of Coronavirus has put the healthcare system and medical research of India under microscopic scrutiny. With just over a month to go for the Union Budget 2021, we are all expecting a significant increase in budgetary allocation for healthcare, research, and development in medical branches.

“The onslaught of Covid-19 has duly woken up the health authorities to the urgent need to raise the allocation for health as a proportion of GDP. Keeping that in mind, the upcoming budget should prompt higher allocation to R&D in biotech, epidemiology as well as pharma in general. Only with increased budgetary attention can we truly harness our existing strength in vaccines and generics. With technology leading to a rise in healthcare costs, higher public health expenditure can make it affordable for common people and reduce out-of-pocket costs. At the same time, the government must relax unrealistic price restrictions and rules in order to encourage investment into developing world-class healthcare infrastructure in the country,” Dr. Tushar Grover, Medical Director, Vision Eye Centre, New Delhi said.

“As India faces the worst ever health crisis of all times, we hope that COVID-19 will at least provide the silver lining in increasing the healthcare budget. There has never been a greater spotlight on healthcare delivery in various environments. No election has unfortunately been fought on healthcare as an issue in India yet. But now with the coronavirus pandemic, the focus is only and squarely on healthcare. I hope that this will lead to an increase in the healthcare budget and various healthcare provisions so that the expenditure spend on health should go up to 3 percent of the GDP as promised by the government,” Dr. Shuchin Bajaj, Founder, and Director, Ujala Cygnus Group of Hospitals said.

In the Union Budget 2020, the Government of India’s Budget estimates on Healthcare for the Financial Year of 2020-21 were 67,484 crore and Revised Estimates for the same sector were 63,830 crore for the Finacial Year of 2019-20.

Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Budget 2021 expectations: Take a cue from pandemic, invest more in health infrastructure, says healthcare players
2Budget 2021 Expectations: What FM may do on direct tax front
3About 50% industry respondents feel Budget 2021 will revive their business: Deloitte survey