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News: Given the Covid pandemic it was expected that health would be the focus of the budget. But government’s focus is more on capital expenditure.
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Why government focus on health is important?
An estimated 70,000 crore have been spent on out-of-pocket expenditure by people. This pushed millions below the poverty line. Children have lost two years of schooling. Covid resulted in a 30% shortfall in covering immunisation and reproductive and child health programmes.
Though The budget allocation on health has increased to 83,000 crores, it is only an increase of 16.4% over the previous year.
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Why less allocation is a challenge for the health sector?
First, because of the COVID-19 pandemic fiscal space for health is small. And the key priorities of defence, education and subsidies also cannot be ignored.
Second, While the Centre bears only 8% of health expenditure, states spend twice that amount. There is a huge divergence in health spending across states, with states like Uttar Pradesh and Bihar becoming major determinants in health outcomes.
Third, improvement in health outcomes needs long-term planning, which is lacking in India.
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Why investment in health sectors is important?
Investment in maternal and child health and nutrition will pay dividends with a more capable workforce. Investments in health provide financial risk protection to the population. This can save families from going into poverty.
The window of long-term investment is small. The 26 million children born in India every year are part of human capital that should be converted into an active and healthy workforce.
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What should be done going forward?
There should be a sustained 20-year plan to reach critical milestones like infant mortality, nutrition, child immunisation, reductions in infectious diseases etc.
India can learn from the Chinese plan and long-term investment which pulled millions out of poverty by investing in health.
The national health Mission thus becomes key for attaining long-term health goals in India.
Source: This post is based on the following articles:
“Budget 2022: Can the finance minister solve India’s health challenges?” published in the Business Standard on 2nd February 2022.
“Budget’s missed healthcare opportunity” published in the Indian Express on 2nd February 2022.
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