India 2020-21 budget of Rs 3,042,230 Crore
India 2020-21 budget of Rs 3,042,230 Crore
Budget 2020 expectations for India’s healthcare sector
Updated: February 1, 2020 8:33:09 AM
Budget 2020 India: India ranks 184 th out of 191 in terms of GDP% spend on healthcare, as per WHO.
Budget 2020 India expectations
In order to help specialised services reach out widely to the masses, these healthcare services need to be brought to ‘zero-slab’ under the GST provisions.
By Vivek Tiwari
Union Budget 2020 India: Despite being one of the largest and fastest-growing in the world, expected to reach USD 133.44 billion by 2022 (IBEF report), India’s healthcare industry still needs to be strengthened manifold. As technological advancements in the healthcare space continue to influence trends internationally, with the beginning of the new decade, what the Budget 2020 delivers on the healthcare front can prove to be a catalyst for this at a national level. The allocation of additional funds, new reforms and the introduction of more targeted initiatives have the potential to make way for unprecedented developments in the sector. Let us take a look at the landscape at present and the scope for improvement across key areas.
Government of India schemes
There are promising new schemes introduced under the AB-PMJAY (Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana) with approximately 10 crore Indian families who are currently under the scheme. It has a potential of around 50 crore people who can come under its ambit and avail its benefits. The Government should invest in increasing the number of hospitals by establishing more facilities under the Ayushman Bharat wing, which shall directly increase the budget for the sector. There is a need for hospital footprint and illness coverage to be increased as well.
Taxation
In order to help specialised services reach out widely to the masses, these healthcare services need to be brought to ‘zero-slab’ under the GST provisions. This will help to make critical and quality healthcare equipment and facilities more accessible to the masses. Also, angel taxation has proven to be a significant deterrent for the development of startups and needs to be done away with. The Employee Stock Ownership Plans (ESPOs) should be taxed in liquidity and not on exercise, and the unlisted entities should be taxed in the same manner as the listed ones.
Medical Devices and Equipment
Price control on medical devices and reasonable adjustments to import duty structures on raw materials and medical equipment are some of the positive steps that have been undertaken to make healthcare more affordable and equitable. This trend needs to be supported by a push for medical equipment and devices that are being built under the ‘Make in India’ campaign. The Government must also offer more incentives for the research and development in the medical device sector in order to drive local manufacturing.
In conclusion, we sincerely hope that the Government will review its policies and schemes keeping the interest of the people on top while considering relevant inputs from the various stakeholders in the sector.
(Writer is Vivek Tiwari, Founder, and CEO of MedikaBazaar. Views expressed personal)
Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.
Budget 2019: Rs 62,398 cr outlay for health sector; Rs 6,400 cr earmarked for AB-PMJAY
The health outlay for this financial year saw an increase of around 19 per cent over the 2018-2019 fiscal when it was Rs 52,800 crore.
PTI|Last Updated: Jul 05, 2019, 04.47 PM IST
NEW DELHI: Union Finance Minister Nirmala Sitharaman Friday announced Rs 62,659.12 crore outlay for the health sector in the 2019-2020 fiscal, the highest in the last two financial years.
The health outlay for this financial year saw an increase of around 19 per cent over the 2018-2019 fiscal when it was Rs 52,800 crore.
The budgetary allocation for the sector is Rs 60,908.22 crore, with Rs 6,400 crore earmarked for the centre's flagship health insurance scheme Ayushman Bharat- Pradhan Mantri Jan Arogya Yojna (AB-PMJAY).
The AB-PMJAY is a flagship scheme of the Union government that aims at providing annual health cover of up to Rs 5 lakh per family for secondary and tertiary care hospitalisation to over 10.74 crore vulnerable families (approximately 50 crore beneficiaries).
Rs 249.96 crore has been allocated for setting up Ayushman Bharat Health and Wellness Centres under the National Urban Health Mission to provide comprehensive primary care close to the community, while Rs 1,349.97 crore has been earmarked for setting up health and wellness centres under the National Rural Health Mission.
Under the programme, nearly 1.5 lakh sub-centres and primary health centres will be transformed as health and wellness centres by 2022. These centre will be equipped to provide treatment for diseases such as blood pressure, diabetes, cancer and old age-related illness.
The allocation for the National Health Mission (NHM) for 2019-20 was raised to Rs 32,995 crore from the last budgetary allocation of Rs 30,129.61 crore. The Rashtriya Swasthya Bima Yojna (RSBY) which features under the NHM saw an allocation of Rs 156 crore, a decline of Rs 1,844 crore from the last fiscal.
The government allocated Rs 2,500 crore to its National AIDS and STD Control Programme an increase of Rs 400 crore from last budget's allocation of Rs 2,100 crore.
The budgetary allocation for the AIIMS has been increased to Rs 3,599.65 crore from Rs 3,018 crore in the 2018-2019 fiscal.
The National Mental Health Programme saw a decline from Rs 50 crore to Rs 40 crore while the budgetary allocation for the National Programme for prevention and control of Cancer, Diabetes, Cardio-vascular Disease and Stroke was reduced to Rs 175 crore from Rs 295 crore.
The total budgetary allocation for the tertiary care programmes saw a Rs 200 crore dip, from Rs 750 crore in 2018-19 to Rs 550 crore in this fiscal.
Rs 64 crore has been earmarked for upgrading and strengthening nursing services, Rs 5 crore for upgrading pharmacy schools and colleges, Rs 800 crore for upgrading district hospitals and state government medical colleges (post-graduate seats).
The government allocated Rs 2,000 crore for converting district hospitals into new medical colleges and Rs 1,361 crore for strengthening government medical colleges (undergraduate) and central government health institutions and Rs 20 crore for setting up State Institutions of Paramedical Sciences in the states and for setting up colleges of para-medical education.
Education sector allocation is ₹99,300 crore (US$14 billion).[4] Power and renewable energy sectors have been allocated ₹22,000 crore (US$3.1 billion).[20] ₹138,700 crore (US$19 billion) allocated for the welfare and upliftment of Scheduled Tribes and Scheduled castes and other Backward Classes.[4] The allocation to the agriculture sector was ₹283,000 crore (US$40 billion)[21][22] while rural development was allocated ₹123,000 crore (US$17 billion).[23] Apart from this a 16-point agenda was listed by the Finance Minister for the agriculture sector as well as a "Blue Economy" initiative.[24] Defence pensions have been allocated ₹13,000 crore (US$1.8 billion) while development of the Union Territory of Jammu and Kashmir has been allocated ₹30,757 crore (US$4.3 billion) and the Union Territory of Ladakh ₹5,958 crore (US$840 million).[25]
The healthcare budget has been increased by 10% to ₹69,000 crore (US$9.7 billion).[26][27] Funding for a campaign to eliminate tuberculosis by 2025 called TB Harega, Desh Jeetega was announced in the budget speech.[4] Mission Indradhanush's scope has been expanded as well as the scope of the Jan Aushadhi Yojana Kendra scheme.[28] Welfare of senior citizens and divyang has been allocated ₹9,500 crore (US$1.3 billion).[4][25]
India's national gas grid to be increased by over 10,000 km.[6] A policy will be formed for data centre construction as well as a National Logistics Policy. ₹8,000 crore (US$1.1 billion) allocated over five years for the National Mission on Quantum Technology and Applications.[6] Five new smart cities to be developed. 100 more airports will be developed to support UDAN.[6] The government plans to raise funds by selling a partial stake in Life Insurance Corporation (LIC) through an initial public offering (IPO).[29] Stake in IDBI Bank to also be sold to the private sector.[6] Indian Institute of Heritage and Conservation to be set up and five sites Rakhigarhi, Hastinapur, Sivasagar, Dholavira and Adichanallur to be developed into world class archaeological sites.[6] An aim of the budget included improving the physical quality of life through a National Infrastructure Pipeline.
A tax-relief was announced including simplified tax processes.[30] Finance Minister Nirmala Sitharaman slashed the personal income tax rate for individuals for fiscal year 2020-21.[31] Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between ₹5-7.5 lakh, ₹7.5-10 lakh, ₹10-12.5 lakh and ₹12.5-15 lakh, respectively. However, to avail this scheme, which is optional, taxpayers will have to forego exemptions.[4] A taxpayer charter was proposed as well.[32] An International Bullion Exchange to be set up at the IFSC in GIFT was also announced.[33] Apart from modifying the definition of an NRI, non tax paying NRIs would be taxed in India if not paying taxes elsewhere.[34] The dividend distribution tax (DDT) has been removed and the "shareholder based taxation system" returns. Some tax exemptions have been introduced for some sovereign funds while a new tax deducted at source for e-commerce operators.[35][36] Rules related to charity contributions and auditing of non-corporate businesses will see some new changes, according to Mondaq.[37] The Finance Bill 2020 included 'tax incentives' such as additional exemptions, modification of definitions such as "business trust", widening of the tax base, 'revenue mobilisation measures', 'penalties for fake invoices', minimizing taxpayer complications etc.[38]
₹100 crore (US$14 million) has been allocated to holding the G-20 summit.[25] ₹600 crore (US$84 million) was allocated for the Prime Ministers Special Protection Group (SPG) cover, up ₹60 crore (US$8.4 million) from last year.[39] Certain defence imports to be exempt from customs duty.[37]
Budget 2020-21: Scheduled Caste allocation 'shortfall' Rs 421,754 crore, highest since 2014
By Our Representative
In a quick analysis, three civil society organizations, Dr Ambedkar Cooperative Federation, National Alliance of People’s Movements and Dalit Adivasi Shakti Adhikar Manch have claimed that the Union budget's shortfall for Scheduled Caste Sub-Plan (SCP) is the highest since 2014-15 -- a whopping Rs 421,754 crore.
Providing figures of budgeted allocation ever since Narendra Modi came to power, the figures show that, as against the SC population of 16.6%, Finance Minister Nirmala Sitharaman allocated just about 2.47% or Rs 83,257 crore out of the total budget of Rs 3,042,230 Crore. This suggests a shortfall of Rs 421,754 as against the actual requirement of Rs 505,010 store if one takes into account proportional allocation to SC population.
"Similarly", says a statement issued by the three organizations, "The population of Scheduled Tribes (STs) in India is 8.6% and their share in budget allocation is just 1.76%. If we go by their population share, they deserve an allocation of around Rs 26.1 lakh crore in budget which is actually only Rs 53,000 crore."
The percentage of allocation for scheduled tribes under the Tribal Sub-Pan has decreased from 1.90% on 2019-20 to 1.76% in 2020-21
The analysis further says, "The percentage of allocation for scheduled tribes under the Tribal Sub-Pan (TSP) has also decreased from 1.90% on 2019-20 to 1.76% in 2020-21", adding, "The total percentage expenditure for SC/ST together under TSP/SCP has decreased from 4.82% to 4.50 %."
According to the analysis, "Another remarkable fact is that in the year 2018-19, Rs 2,276 crore and in 2017-18, Rs 2,901 crore was unspent under the SCP allocation. For Scheduled Tribes, Rs 2,245 crore remained unspent under the TSP head in the year 2018-19."
It comments, "While a major chunk of population strives for basic amenities like health and education, the situation being grimmer for backward classes like SCs and STs, the funds for them lay unutilized. The tall claim of Sabka Sath, Sabka Vikas falls flat when it comes to the marginalized classes of the society."
Budget 2020 expectations for India’s healthcare sector
Updated: February 1, 2020 8:33:09 AM
Budget 2020 India: India ranks 184 th out of 191 in terms of GDP% spend on healthcare, as per WHO.
Budget 2020 India expectations
In order to help specialised services reach out widely to the masses, these healthcare services need to be brought to ‘zero-slab’ under the GST provisions.
By Vivek Tiwari
Union Budget 2020 India: Despite being one of the largest and fastest-growing in the world, expected to reach USD 133.44 billion by 2022 (IBEF report), India’s healthcare industry still needs to be strengthened manifold. As technological advancements in the healthcare space continue to influence trends internationally, with the beginning of the new decade, what the Budget 2020 delivers on the healthcare front can prove to be a catalyst for this at a national level. The allocation of additional funds, new reforms and the introduction of more targeted initiatives have the potential to make way for unprecedented developments in the sector. Let us take a look at the landscape at present and the scope for improvement across key areas.
India ranks 184 th out of 191 in terms of GDP% spend on healthcare, as per WHO. At 85$ (approximately INR 6044), the average healthcare spend per person in India is amongst the lowest when compared to other countries. Even countries like Sri Lanka, China, and Thailand invest three to four times more per capita on healthcare. At present, Government spending on the healthcare industry stands at 1.15% of the Gross Domestic. As the Prime Minister has promised to double its public health spending to 2.5% of the GDP by 2025, the sector expects a higher allocation from the Government’s Budget 2020. The healthcare sector can be made more affordable for the masses only if the Government invests more in the sector. Therefore, we believe that India needs to drastically increase its healthcare budget allocation.
There are promising new schemes introduced under the AB-PMJAY (Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana) with approximately 10 crore Indian families who are currently under the scheme. It has a potential of around 50 crore people who can come under its ambit and avail its benefits. The Government should invest in increasing the number of hospitals by establishing more facilities under the Ayushman Bharat wing, which shall directly increase the budget for the sector. There is a need for hospital footprint and illness coverage to be increased as well.
Taxation
In order to help specialised services reach out widely to the masses, these healthcare services need to be brought to ‘zero-slab’ under the GST provisions. This will help to make critical and quality healthcare equipment and facilities more accessible to the masses. Also, angel taxation has proven to be a significant deterrent for the development of startups and needs to be done away with. The Employee Stock Ownership Plans (ESPOs) should be taxed in liquidity and not on exercise, and the unlisted entities should be taxed in the same manner as the listed ones.
Medical Devices and Equipment
Price control on medical devices and reasonable adjustments to import duty structures on raw materials and medical equipment are some of the positive steps that have been undertaken to make healthcare more affordable and equitable. This trend needs to be supported by a push for medical equipment and devices that are being built under the ‘Make in India’ campaign. The Government must also offer more incentives for the research and development in the medical device sector in order to drive local manufacturing.
In conclusion, we sincerely hope that the Government will review its policies and schemes keeping the interest of the people on top while considering relevant inputs from the various stakeholders in the sector.
(Writer is Vivek Tiwari, Founder, and CEO of MedikaBazaar. Views expressed personal)
Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.
Budget 2019: Rs 62,398 cr outlay for health sector; Rs 6,400 cr earmarked for AB-PMJAY
The health outlay for this financial year saw an increase of around 19 per cent over the 2018-2019 fiscal when it was Rs 52,800 crore.
PTI|Last Updated: Jul 05, 2019, 04.47 PM IST
NEW DELHI: Union Finance Minister Nirmala Sitharaman Friday announced Rs 62,659.12 crore outlay for the health sector in the 2019-2020 fiscal, the highest in the last two financial years.
The health outlay for this financial year saw an increase of around 19 per cent over the 2018-2019 fiscal when it was Rs 52,800 crore.
The budgetary allocation for the sector is Rs 60,908.22 crore, with Rs 6,400 crore earmarked for the centre's flagship health insurance scheme Ayushman Bharat- Pradhan Mantri Jan Arogya Yojna (AB-PMJAY).
The AB-PMJAY is a flagship scheme of the Union government that aims at providing annual health cover of up to Rs 5 lakh per family for secondary and tertiary care hospitalisation to over 10.74 crore vulnerable families (approximately 50 crore beneficiaries).
Rs 249.96 crore has been allocated for setting up Ayushman Bharat Health and Wellness Centres under the National Urban Health Mission to provide comprehensive primary care close to the community, while Rs 1,349.97 crore has been earmarked for setting up health and wellness centres under the National Rural Health Mission.
Under the programme, nearly 1.5 lakh sub-centres and primary health centres will be transformed as health and wellness centres by 2022. These centre will be equipped to provide treatment for diseases such as blood pressure, diabetes, cancer and old age-related illness.
The allocation for the National Health Mission (NHM) for 2019-20 was raised to Rs 32,995 crore from the last budgetary allocation of Rs 30,129.61 crore. The Rashtriya Swasthya Bima Yojna (RSBY) which features under the NHM saw an allocation of Rs 156 crore, a decline of Rs 1,844 crore from the last fiscal.
The government allocated Rs 2,500 crore to its National AIDS and STD Control Programme an increase of Rs 400 crore from last budget's allocation of Rs 2,100 crore.
The budgetary allocation for the AIIMS has been increased to Rs 3,599.65 crore from Rs 3,018 crore in the 2018-2019 fiscal.
The National Mental Health Programme saw a decline from Rs 50 crore to Rs 40 crore while the budgetary allocation for the National Programme for prevention and control of Cancer, Diabetes, Cardio-vascular Disease and Stroke was reduced to Rs 175 crore from Rs 295 crore.
The total budgetary allocation for the tertiary care programmes saw a Rs 200 crore dip, from Rs 750 crore in 2018-19 to Rs 550 crore in this fiscal.
Rs 64 crore has been earmarked for upgrading and strengthening nursing services, Rs 5 crore for upgrading pharmacy schools and colleges, Rs 800 crore for upgrading district hospitals and state government medical colleges (post-graduate seats).
The government allocated Rs 2,000 crore for converting district hospitals into new medical colleges and Rs 1,361 crore for strengthening government medical colleges (undergraduate) and central government health institutions and Rs 20 crore for setting up State Institutions of Paramedical Sciences in the states and for setting up colleges of para-medical education.
Education sector allocation is ₹99,300 crore (US$14 billion).[4] Power and renewable energy sectors have been allocated ₹22,000 crore (US$3.1 billion).[20] ₹138,700 crore (US$19 billion) allocated for the welfare and upliftment of Scheduled Tribes and Scheduled castes and other Backward Classes.[4] The allocation to the agriculture sector was ₹283,000 crore (US$40 billion)[21][22] while rural development was allocated ₹123,000 crore (US$17 billion).[23] Apart from this a 16-point agenda was listed by the Finance Minister for the agriculture sector as well as a "Blue Economy" initiative.[24] Defence pensions have been allocated ₹13,000 crore (US$1.8 billion) while development of the Union Territory of Jammu and Kashmir has been allocated ₹30,757 crore (US$4.3 billion) and the Union Territory of Ladakh ₹5,958 crore (US$840 million).[25]
The healthcare budget has been increased by 10% to ₹69,000 crore (US$9.7 billion).[26][27] Funding for a campaign to eliminate tuberculosis by 2025 called TB Harega, Desh Jeetega was announced in the budget speech.[4] Mission Indradhanush's scope has been expanded as well as the scope of the Jan Aushadhi Yojana Kendra scheme.[28] Welfare of senior citizens and divyang has been allocated ₹9,500 crore (US$1.3 billion).[4][25]
India's national gas grid to be increased by over 10,000 km.[6] A policy will be formed for data centre construction as well as a National Logistics Policy. ₹8,000 crore (US$1.1 billion) allocated over five years for the National Mission on Quantum Technology and Applications.[6] Five new smart cities to be developed. 100 more airports will be developed to support UDAN.[6] The government plans to raise funds by selling a partial stake in Life Insurance Corporation (LIC) through an initial public offering (IPO).[29] Stake in IDBI Bank to also be sold to the private sector.[6] Indian Institute of Heritage and Conservation to be set up and five sites Rakhigarhi, Hastinapur, Sivasagar, Dholavira and Adichanallur to be developed into world class archaeological sites.[6] An aim of the budget included improving the physical quality of life through a National Infrastructure Pipeline.
A tax-relief was announced including simplified tax processes.[30] Finance Minister Nirmala Sitharaman slashed the personal income tax rate for individuals for fiscal year 2020-21.[31] Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between ₹5-7.5 lakh, ₹7.5-10 lakh, ₹10-12.5 lakh and ₹12.5-15 lakh, respectively. However, to avail this scheme, which is optional, taxpayers will have to forego exemptions.[4] A taxpayer charter was proposed as well.[32] An International Bullion Exchange to be set up at the IFSC in GIFT was also announced.[33] Apart from modifying the definition of an NRI, non tax paying NRIs would be taxed in India if not paying taxes elsewhere.[34] The dividend distribution tax (DDT) has been removed and the "shareholder based taxation system" returns. Some tax exemptions have been introduced for some sovereign funds while a new tax deducted at source for e-commerce operators.[35][36] Rules related to charity contributions and auditing of non-corporate businesses will see some new changes, according to Mondaq.[37] The Finance Bill 2020 included 'tax incentives' such as additional exemptions, modification of definitions such as "business trust", widening of the tax base, 'revenue mobilisation measures', 'penalties for fake invoices', minimizing taxpayer complications etc.[38]
₹100 crore (US$14 million) has been allocated to holding the G-20 summit.[25] ₹600 crore (US$84 million) was allocated for the Prime Ministers Special Protection Group (SPG) cover, up ₹60 crore (US$8.4 million) from last year.[39] Certain defence imports to be exempt from customs duty.[37]
Budget 2020-21: Scheduled Caste allocation 'shortfall' Rs 421,754 crore, highest since 2014
By Our Representative
In a quick analysis, three civil society organizations, Dr Ambedkar Cooperative Federation, National Alliance of People’s Movements and Dalit Adivasi Shakti Adhikar Manch have claimed that the Union budget's shortfall for Scheduled Caste Sub-Plan (SCP) is the highest since 2014-15 -- a whopping Rs 421,754 crore.
Providing figures of budgeted allocation ever since Narendra Modi came to power, the figures show that, as against the SC population of 16.6%, Finance Minister Nirmala Sitharaman allocated just about 2.47% or Rs 83,257 crore out of the total budget of Rs 3,042,230 Crore. This suggests a shortfall of Rs 421,754 as against the actual requirement of Rs 505,010 store if one takes into account proportional allocation to SC population.
"Similarly", says a statement issued by the three organizations, "The population of Scheduled Tribes (STs) in India is 8.6% and their share in budget allocation is just 1.76%. If we go by their population share, they deserve an allocation of around Rs 26.1 lakh crore in budget which is actually only Rs 53,000 crore."
The percentage of allocation for scheduled tribes under the Tribal Sub-Pan has decreased from 1.90% on 2019-20 to 1.76% in 2020-21
The analysis further says, "The percentage of allocation for scheduled tribes under the Tribal Sub-Pan (TSP) has also decreased from 1.90% on 2019-20 to 1.76% in 2020-21", adding, "The total percentage expenditure for SC/ST together under TSP/SCP has decreased from 4.82% to 4.50 %."
According to the analysis, "Another remarkable fact is that in the year 2018-19, Rs 2,276 crore and in 2017-18, Rs 2,901 crore was unspent under the SCP allocation. For Scheduled Tribes, Rs 2,245 crore remained unspent under the TSP head in the year 2018-19."
It comments, "While a major chunk of population strives for basic amenities like health and education, the situation being grimmer for backward classes like SCs and STs, the funds for them lay unutilized. The tall claim of Sabka Sath, Sabka Vikas falls flat when it comes to the marginalized classes of the society."
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