The health component of the Union Budget for the coming year represents a directional shift in the government’s thinking. On the face of it, the health budget is more than double the previous year’s allotment (Rs2,23,846 crore in the latest budget, as against Rs94,452 crore in Budget 2020). However, this includes allocations of Rs35,000 crore for Covid-19 vaccinations, Rs60,000 crore for the Department of Drinking Water & Sanitation) and Rs36,000 crore as special grants also for drinking water and sanitation programmes. In addition, there is a budgetary provision of Rs64,180 crore for a six-year plan labelled Atmanirbhar Swasth Yojana.
The specific amount earmarked this year for the Department of Health & Family Welfare is Rs71,269 crore – an increase of 9.6 per cent over Rs65,000 crore in the previous year. The conclusion many critics of the government have drawn is that the Central government has paid lip service to the health sector, instead of providing a genuine boost.
While being careful not to criticise the budget provisions directly, the Organisation of Pharmaceutical Producers of India (OPPI) notes that the budget increase from Rs69,000 crore (revised estimates) last year, to Rs71,269 crore this year is insubstantial. Thus, it avoids talking about the total figure of over Rs2 lakh crore mentioned in the budget proposals. The OPPI has, however, welcomed the separate allocation for Covid-19 vaccination and plans for support to the health and wellness centres, both in the cities and rural districts.
Lack of support
Prominent consultancy firms, such as Frost & Sullivan and the Exim Bank, have also commented gently but adversely on the move to include Drinking Water and Sanitation as part of the health budget. “The government’s proposal to increase the health budget by 137 per cent seems like a huge leap at first glance,” says Ruplekha Choudhurie, industry analyst, Techvision for Frost & Sullivan.