Budget 2024: Just a few days later, Finance Minister Nirmala Sitharaman will present the interim budget 2024. As the general elections are months away, its unlikely that any major announcement will be made.
However, the healthcare sector is anticipating an increased expenditure, equitable supply and utilisation and strategic investments and incentives that foster innovation, research, and development within the sector. Some experts are expecting a comprehensive approach to healthcare spending in the interim budget of 2024.
The rising cost of medications presents a significant challenge, especially for people struggling with chronic conditions. Will the Finance Minister cut down cost of medicines in the interim budget 2024 presentation?
“Affordable health care, including affordable drug prices, is paramount to the nation’s prosperity. High costs often lead to non-adherence and abandonment of treatment, ultimately exacerbating health problems. Potential initiatives to curb this critical issue are likely to include reductions in Goods and Services Tax (GST) on essential drugs or tax concessions for pharmaceutical companies manufacturing generic versions of crucial medications,” Dr Gayatri Kamineni, COO, Kamineni Hospitals told Financial Express.com.
According to Dr. Kamineni, by emphasizing the importance of generic drugs for enhanced healthcare cost-effectiveness, the budget could promote their usage, leading to significant cost savings, patient benefits, and a more sustainable healthcare system.
“Furthermore, optimism surrounds the possibility of increased budget allocations for pharmaceutical research and development, thereby fostering innovation and paving the way for affordable medicines. Addressing drug costs demands a multifaceted approach encompassing regulatory reforms, research support, and initiatives to promote fair competition within the pharmaceutical industry. Only through such a comprehensive strategy can India ensure accessible and affordable healthcare for all,” she said.
With Finance Minister Nirmala Sitharaman announcing the budget for 2024-25 on February 1, we expect the Center to focus on the rising prices of medicines and medical equipment manufacturing units in India to be strengthened, she added.
Meanwhile, Dr. Monica Gulati, Executive Dean, Faculty of Applied Medical Sciences, LPU explained that after COVID, morbidity and mortality in the general population has been found to be increased, thereby increasing the need for various medical interventions.
“With the medical market rapidly expanding and pharmaceutical drug prices soaring, it is imperative for the government to take decisive action in this budget. Research reveals staggering numbers of people affected by chronic conditions like diabetes, prediabetes, high blood pressure, obesity, and cancer. To ensure affordable healthcare for all, increased rebates on medicine prices stricter regulation in the cost of medicines is anticipated,” Dr. Gulati told Financial Express.com.
A significant boost in the pharma sector’s budget is essential to ensuring that every individual can access the benefits of affordable life-saving and preventive patient case, she added.
According to Dr. Vishal Arora, Chief of Business Transformation & Operational Excellence, Artemis Hospitals, there is an eminent requirement to reduce the cost of medicine in India and this involves addressing various factors such as production, distribution and regulations, actual budget measures can significantly impact the pharmaceutical industry’s growth and sustainability.
“There would be expectations from the upcoming budget to focus on R&D which would involve investing in research and development to discover cost-effective ways of producing medicines, policies that foster the growth of local pharmaceutical manufacturing to reduce dependency on imported medicines, favorable customs duties and tariffs to ease the import/export of raw materials and finished pharmaceutical products, promote measures for public private partnership to develop and manufacture medicines in the country,” Dr. Arora told Financial Express.com.
Increased budget allocations to healthcare is crucial not only to strengthen our existing infrastructure but also to ensure quality healthcare services reach every corner of the country, he said.
Finance Minister Sitharaman will present the interim budget 2024 on February 1. This will be FM Sitharaman’s sixth budget. As general elections are scheduled to take place in India later this year, this budget will be a “vote-on-account”. A complete budget will be presented after the new cabinet is elected after the elections.
