Budget reaction: Charu Sehgal, Partner and Leader, Lifesciences and Healthcare, Deloitte India

IMT News Desk
IMT News Desk
· 2 min read

The budget 2021 has provided the much-expected increase in public expenditure on healthcare. The finance minister has announced an outlay of Rs 64180 crores over six years though, on Atma Nirbhar Swasthya Bharat scheme in addition to the National Health Mission budget.

There appears to be an integrated approach whereby both the short term and immediate needs, as well as the longer-term measures, have been proposed. While the provision of Rs 35000 crores for COVID-19 vaccine and focus on disease control and surveillance will help cope with the immediate needs brought forth by the pandemic, the setting up of National Institutes for virology and Integrated Health Labs, an updated health information portal will all prepare us for future such eventualities.

The pandemic had brought to the fore the stark shortage in infrastructure and medical and paramedical medical resources. The budget announced setting up and up-gradation of primary, secondary and tertiary health units across districts and blocks, as well as a focus on allied healthcare professionals and that, is a welcome step.

The budget has also looked at healthcare holistically and focussed on other determinants of health such as nutrition, water and sanitation and air quality. Prevention and wellness have thus been a key focus. The total outlay on healthcare and wellness has been Rs 2.24 lakh crores including the above mentioned allied departments. This has been increased from Rs 91,000 crores last year.

What seems to be missing was the support and boost that was expected to encourage private investment in healthcare infrastructure as well in the manufacture of medical devices.

There was also no mention of specific support and incentives for R&D and innovation for the Pharma and Medical technology.

It was the private sector that rose to the challenge during the last year whether it was on innovation or manufacture of drugs, devices and vaccines or testing and treatment and it was expected that it will be provided with a boost.

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