Question

DII What steps can be taken to improve the public healthcare sector?​

Answer 1

Answer:

Despite modest increases in budget outlays over the last year, India continues to spend some of the lowest amounts as a country on health, around 1.1% of its GDP. The National Health Policy recommends increasing the outlay – Centre and state combined – to 2.5%. It further recommends that state budgets increase health allocation 8% of the total budget. At the moment, all states except Delhi a lot less than 8%. The Union budget also received a modest increase of 19% after near-constant allocations for two years.

We wish that the national and state budget allocations increase by at least 25% in the next year, i.e. the national health budget would receive Rs 80,000 crore (even if not accounting for purchasing power parity). However, this wouldn’t be sufficient because it contributes only to about a third of total government spending on health. A quantum increase on state government allocations to health is necessary: states increasing their allocation by 1% every year will help reach the recommended goal of 8% in four years.