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Feeling the pinch: Key health schemes face budget cuts

Experts feel 2017-18 will be tough with no major raise in funds for certain programmes

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Free medicines being distributed under CGHS Health Scheme in Mumbai
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Post the budget allocation, the Ministry of Health and Family Welfare (MoHFW) may now have a tough task ahead, juggling with figures for its various important schemes. While the ministry lauded the government over increments awarded to health verticals such as health based Adhaar cards for senior citizens and focus on eradication of diseases like kala azaar and measles, significant health areas have received a considerable cut.

While the allocation for National Rural Health Mission has been raised in the Union Budget for 2017-18, allocation for National Urban Health Mission declined from Rs 950 crore in 2016-17 to Rs 752 crore for 17-18. Similarly, Budget allocation for Reproductive and Child Health (RCH) is now Rs 5,966 crore from Rs 7,775 crore in 2016-17.

“This is of concern, as healthcare needs in urban areas have increased with growing urbanisation and migration. It is not clear how the Union Budget for 2017-18 will split health spending across various programmes and how much will be available for the family planning programme,” said Poonam Muttreja, Executive Director, Population Foundation of India.

“The family planning programme is almost wholly- funded by the central government. It’s been receiving very little attention in the recent past. In the past few years, the budget for family planning initiatives have received only four to five per cent allocation of the total health budget,” she said.

The Finance Ministry has drastically curtailed the budget of Health Sector Disaster Preparedness and Management, Emergency Medical Response (EMR), and Avian Flu Response from Rs 30 crore to Rs 16.85 crore this year.

Though the government aims to provide universal healthcare for all, the National Health Protection Scheme — erstwhile Rashtriya Swasthya Surakhya Yojana (RSSY) — that was announced in the last budget (2016-17) aiming to provide health cover up-to rupees one lakh per family has witnessed a decrease from Rs 1,500 crore to Rs 1,000 crore this year. Likewise, the burning issue of anti-microbial resistance worldwide has gained little attention from the government with a decrease in research budget from Rs 1.58 crore to Rs 1.16 crore.

“At a quick glance, the Health Budget may appear fine. While for certain schemes such as Tertiary Care Programmes and health insurance schemes, there is no increment, for some there is a cut. It will be tough to manage this year when we have been asking for a raise in the budget for several schemes,” said a senior Health Ministry official.

The allocation of Rs 48,853 crore for the Ministry of Health and Family Welfare in this year’s Union Budget indicates a 27 per cent increase in health budget allocation. But the health sector’s share in the GDP has seen only a marginal increase from 0.26 percent in 2016-17 to 0.30 per cent in 2017-18. The allocation does not meet the long standing demands (articulated in the Draft National Health Policy, 2015) of increasing the total allocation for health sector to at least 2.5 percent of GDP.

“The funds allocated are higher than last year and the year before, the figures being 15 per cent and 8 per cent respectively. However, most of the increase comes from transfers to states/union territories, which comprises 55 per cent of the health budget. Health being a state subject, this reflects the government’s continued efforts to increase the role of states in health and reduce that of the Union Health Ministry at the centre,” said Muttreja.

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