The Indian Healthcare Sector requires a comprehensive sector development program under the government of India to foster private sector investment, medical education infrastructure development, support structured financing at low cost, drive digitization in the healthcare sector, provide a roadmap towards universal healthcare coverage, and coordinate the efforts of the private and public sectors
The Union Budget 2023-24 for the healthcare sector should be drafted keeping in mind the long-term vision for building a “Healthy India” with sustainable healthcare infrastructure and healthcare workforce. There is a need to increase the budget by a minimum of 30 to 35 percent focusing on the below five priority areas
Health Insurance of India’s Missing Middle– Comprehensive insurance model to cover the missing population – In 2021, as highlighted by the Niti Aayog report titled “Health Insurance of India’s Missing Middle”, a population of around 40 crore individuals are still devoid of any financial protection. Although in 2022, the government took the initiative of extending AB-PMJAY cover to senior citizens (women above the age of 65 and men above 75 years) but still, there is an urgent need
Establishing a healthcare infrastructure fund – Micro, Small, and Medium Enterprises (MSMEs), startups, and Medical Device parks are some of the areas in which the government has set up dedicated funds and schemes to support infrastructure development. In the last few years, there have been fewer new medical colleges in the private sector, and the recent capping on fees has further limited the interest of the private sector to set up medical colleges. Central and state governments can stab.
Tax benefits for healthcare skilling and development – As per the Income Tax Act, 2013-Section 35CCD, for computing business income, a manufacturing company is allowed a weighted deduction of 150 percent of expenses (other than land or building) incurred on a skill development project, allowing manufacturers to recover the money invested on the skill development needed for their industry. These fees may also be repaid to the company in cash returns rather than tax deductions.
Tax benefits on preventive health check-ups – Government should increase the health checkup deduction limit of ₹5,000 to ₹15,000 for a family in the budget 2022 to encourage citizens towards preventive health check-ups.
