Mixed Response To budget by Healthcare sector

The health sector has given a mixed response to the relevant measures announced in the Union Budget. The government announced a slew of measures concerning the health sector. The steps include: increasing allocation by Rs 2,770 crore; announcing annual surveys to prepare the health profile of all districts and to assess spending under National Rural Health Mission; uniform, concessional basic duty of five per cent for all medical appliances; convergence of NREGA with wider health insurance coverage through Rashtriya Swasthya Bima Yojana; countervailing duty of four per cent with full exemption from special additional duty on all medical equipment. However, no announcement that promotes setting up of new hospitals has disappointed the health sector. “It is ironical that the budget provides for investment-linked deductions to the tourism sector but does not provide for any impetus for investments made in setting up new hospitals,” said Dr Vishal Bali, CEO, Fortis Hospital. Rajen Padukone, CEO, Manipal Hospital, said: “Relaxation of FDI norms may see more international players coming in to India in the healthcare sector. Added to it, rationalisation of duties on medical equipment can make imports cheaper and can significantly lower healthcare costs in the country.” Satish Reddy, Managing Director and COO, Dr. Reddy’s Laboratories, said considering that India figured low on various health care indices, the budget allocation was “a positive and encouraging move.”

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