Dolly Dholakia

The focus of the 2021 healthcare budget is on reviving the cracked healthcare, which has been seriously harmed by the unprecedented pandemic. Given the budget's creation during a tough economic period, it is a positive budget for the healthcare sector overall. The budget this year put expenditures ahead of privatization, as demonstrated by a strong supply-side drive for healthcare infrastructure. The FM has allocated various amounts and implemented several schemes and improvements for the healthcare sector, keeping in mind the holistic method of prevention, treatment, and well-being. The government's increased funding for the healthcare sector has been welcomed by the industry, which would help to create jobs and improve economic growth.

The government has allocated Rs.2.23 lakh crore to the healthcare sector, marking a 137 percent raise over the previous year's budget. The budget focuses on strengthening the nation's healthcare system and access to medical care. It funds numerous wellness centers and public health laboratories, ensuring that residents in rural areas have greater access to basic and high-quality healthcare. The announcement of the creation of 3,382 block public health units in 11 states, critical care hospital blocks in 602 districts, and 12 central institutions is a significant development that will help patients get to medical facilities more quickly. Such setups should help in making the sector attractive from an investment perspective due to the generation of local demand. Further, these labs and wellness centers will also lead to an increase in awareness of healthcare, especially in the rural areas, leading to ‘Swasth’ India.

The Covid-19 vaccine, which will help control the disease, has been allocated Rs.35000 crore. The "PM Atmanirbhar Swasthya Yojana" will concentrate on improving the healthcare system's capabilities, as well as building institutions to diagnose and treat new and emerging diseases. This scheme's budget has been set at Rs.64,180 crore for the next six years. More importantly, the budget emphasizes a holistic approach to health and well-being, which includes Mission Poshan 2.0, which aims to improve nutritional outcomes. The increased allocation, which includes improved nutrition, sanitation, clean drinking water, and pollution control, would undoubtedly benefit the region. The government has not considered the rationalization of import duties and GST, which could have boosted local manufacturing even further. The government has not offered any incentives to improve R&D and drive local innovation.

Infrastructure acceleration, a much-needed GDP growth engine, should be aided by a 26% rise in total capital expenditures. With the increase in the FDI limit to 74 percent from 49 percent, the insurance sector, which is a significant pillar for any economy, should see exponential growth. Overall, a forward-looking budget will help India achieve its target of 11% GDP growth in FY22, as expected by the Economic Survey 2020.

Although it is promising to see the government concentrating on healthcare infrastructure, such direct and indirect tax incentives, such as special tax holidays, enhanced R&D deductions, and rationalizing import duties and GST would have not only given local manufacturing a much-needed boost but also served as a reward for the healthcare sector's critical contributions. This budget would undoubtedly bring us closer to achieving the objective of an affordable healthcare system.