Question

which reforms are done by taking steps in health sector in India after independence?​

Answer 1

Answer:

For several decades, public sector reforms have been premised on the

assumption that improving the ability of the government to manage its business will

lead to improved social and economic position of the country. The Indian economy

grew at a comparatively low rate of growth of 3.5 percent from 1950 to 1980. The

plethora of procedures, permits, bureaucratic controls and protectionist policies

created under import substitution strategy (ISS) along with other factors landed us

into economic crisis of 1991 which was reflected in macroeconomic mismanagement

of the economy judged from parameters such as high fiscal deficit, high balance of

payment deficit, double digit inflation, low forex reserves etc. An attempt was made

to resolve this crisis through the introduction of stabilization and structural adjustment

programme (SAP)/ economic reforms. One of the important planks of the stabilization

measures is the compression of public expenditure and that of SAP is raising

efficiency and international competitiveness.

It is apprehended that any economic reform package that especially relates to

compression in public expenditure will adversely affect the vulnerable sections of the

society as this will lead to reduction in social sector spending. The experience of

many developing countries which have embarked upon a process of macroeconomic

reforms during the last 20 years shows that the accentuation of reforms lead to

reduction in public spending on basic services and programs directly related to social

sector development or human resource development (Gupta and Sarkar, 1994). Even

the European countries which have experienced reforms have had diverse experiences

with respect to the social impact of reforms (Panchamukhi, 2000). It is from this angle

a study of impact of economic reforms on public health expenditure which is a

component of social sector expenditure in India becomes important. During the

1970’s “growth with social justice” was the popular slogan. But from 1980’s onwards

that is from the onset of reforms the slogan of “equity with stabilization and SAP”

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