Budget 2024- Boost healthcare spending, reform iGST and address embedded tax issues, industry leaders urge

Budget 2024: Boost healthcare spending, reform iGST and address embedded tax issues, industry leaders urge

Interim Budget 2024: Financial Minister Nirmala Sitharaman will present the interim budget for fiscal year 2024-25 on February 1, 2024. Sitharaman will present the budget for the sixth time this year under the Modi government.

As the Lok Sabha elections are due this year, the finance minister will present the interim Budget instead of a full-year Budget. It is noteworthy that the full budget for the fiscal year 2024-25 will be presented after the formation of the new government following the general elections.

Through a set of recommendations submitted for the Union Budget 2024-25, NATHEALTH has urged the government to embark on transformative measures that prioritise bolstering healthcare infrastructure and making strategic investments to overcome supply-side constraints.

“NATHEALTH recommendations emphasize strengthening healthcare infrastructure, rationalization of GST, fostering innovative healthcare models tailored to meet the diverse needs of India’s populace, facilitating access to capital to strengthen India’s healthcare ecosystem, and leveraging technology to establish world-class healthcare ecosystems. The recommendations go beyond the conventional norms by advocating for inclusive strategies that confront regional healthcare disparities, the body said in a statement.

This includes targeted initiatives to address the issue of skilled health workforce and how to make India a preferred choice among global and domestic patients.

Here are top recommendations by NATHEALTH for the interim budget 2024:INCREASING BUDGET ALLOCATION TO HEALTH: India’s public healthcare spending remains low, at only around 1.6-1.8 % of GDP. These allocations are insufficient to tackle the magnitude of healthcare challenges. NATHEALTH recommends increasing budget allocation to 2.5% of GDP to augment the social insurance schemes, boosting healthcare reforms and infrastructure and fast-tracking digital health services across India.RATIONALIZATION OF GST: Although increased budget allocation has been a longstanding request from the sector, there remains another persistent issue concerning the healthcare credit chain through GST. Indirect taxation and lack of input credit for providers poses a significant challenge for the healthcare industry. NATHEALTH strongly recommends outlining a reform agenda in the Finance Bill aimed at restructuring the healthcare GST framework.BOOSTING THE VALUE CHAIN: NATHEALTH emphasizes the importance of strengthening the entire value chain to drive economic progress and create new opportunities. The focus should remain on augmenting local capabilities to extend care to the most remote areas, while concurrently emphasizing the localization of the value chain. Additionally, harmonizing global best practices necessitates integrated budget allocations for effective execution as well safeguards for quality and patient safety.BOOSTING MEDICAL VALUE TRAVEL: Medical value-added services and Tavel is expected to be USD 10 bn. To further aid the growth of this segment the issue of MAT credit needs immediate government attention. It is crucial for individuals to benefit from exports. This move will give them an opportunity to offset it. It will create a more significant value proposition to focus on MVTs and boost capacity.SEPARATE BUDGET ALLOCATION FOR SKILLING AND CAPACITY BUILDING OF HEALTHCARE WORKERS TO SERVE THE PRIMARY CARE AND OVERALL HEALTHCARE NEEDS: While the government announced the establishment of 157 new nursing colleges in the previous budget, strengthening health workforce situation in India is one such area that needs continuous government and policy focus. India’s doctor-to-patient ratio is lower than WHO recommended threshold. NATHEALTH recommends that the government should allocate funds for training and development programs for doctors, nurses, and allied healthcare workers, putting special emphasis on digital learning stack and smart certification standards.

“As we present these comprehensive budget recommendations, NATHEALTH envisions a transformative roadmap for India’s healthcare future. India’s healthcare demands urgent and strategic reforms. I advocate for increasing our healthcare budget to 2.5% of GDP, rationalizing the GST framework, and strengthening our healthcare value chain. It’s crucial to focus on capacity building and training of healthcare professionals to meet the growing demands of our nation. These steps are vital for a robust and responsive healthcare system in India,” Dr Ashutosh Raghuvanshi, President, NATHEALTH and MD & CEO, Fortis Healthcare, said.