The union budget has been announced and it seems the Modi Government has done it’s bit to please everybody. While that is quite a task to achieve, it seems the main man Arun Jaitely has found a middle ground. If you are someone who is wondering what all this budget talk means in terms of your health, here is a simple break down:
The union budget has been announced and it seems the Modi Government has done it’s bit to please everybody. While that is quite a task to achieve, it seems the main man Arun Jaitely has found a middle ground. If you are someone who is wondering what all this budget talk means in terms of your health, here is a simple break down:
Positives for the health sector:
The focus of this year’s budget it seems was to ensure that every person in India has health, accident and life insurance. To prove that the Modi government is doing all it can for the people ensuring health insurance for all. According to Somesh Chandra, Chief Operations Officer & Chief Quality Officer, Max Bupa, ‘The Union Budget 2015-16 is a breakthrough budget and sets pace for fast growth economic trajectory through a robust financial framework. We are delighted that the budget has fulfilled the wish list of the health insurance sector and delivered on our long standing demand, of increasing the tax deduction limit under section 80D. We are confident that the budget will bring macroeconomic stability by conquering inflation, enable equal economic opportunity and lay a favourable roadmap for double digit economic growth.’
Cleaner and healthier India
As one of the three achievements he spoke about was the Swachh Bharat Abhiyan during which they have built about fifty lakh toilets, and have promised to build six crore more. He added that the Swachh Bharat Abhiyan is not only a hygiene movement but it is about preventive healthcare.
Insurance for all
In an effort to provide insurance — health, accident and life — through the universal social security systems for all the government has decided to provided an accidental death risk insurance worth two lakhs, in which a person will have to pay a premium of twelve rupees per year.
They have also increase the amount of deductions a person can claim on payment of the payment of a health insurance premium by 30% from Rs 15,000 to Rs 25,000. He added that this was a way to push the common man to invest in health insurance. Apart from that, he increased the senior citizens deduction limit to 30,000.
Tax exemptions for health and welfare
Another move was to promote important schemes that the government had planned, in that regard, Aruj Jaitely has revealed that they will now fully exempt any contribution to the Sukanya Samriti Scheme (made to improve the growth of the girl child), a service tax exemption on the Varisht Bhima Yojna and finally Yoga will be included into the charitable schemes and will now be tax exempt.
Focus on Senior citizen
In his speech Aruj Jaitely said that we are a nation that cares for its elderly and the government should aid in that endeavour. In that regard he announced the following schemes for the elderly.
Senior citizens welfare fund: With an intense focus on the health and life of senior citizens the budget includes using the vast amount of money from unclaimed PPFs to provide healthcare and support for the aged, pensioners and underprivileged. The senior citizen’s fund will also address age related disabilities by starting a new scheme for providing physical aids and assisted living facilities to those who need the assistance, especially those below the poverty line.
In conclusion he added that these schemes were a way to make sure that no one has to worry about illness accidents and old age.
Health Insurance deductions: 30,000 deduction will be allowed for senior citizens with serious and debilitating ailments and increase this deduction amount for senior citizens living with disabilities.
Will help you plan for old age
In order to provide a social safety net and the facility of pension to individuals, he has formulated an additional deduction of fifty percent to make India a pensioned society. Apart from that he has also formulated the following two plans:
Atal Pension Yojna: This is a scheme where the government will run a pension scheme where a person can deposit a certain amount of pension, apart from which the government will put in 50% of the amount the person pays, not exceeding an amount of rupees one thousand.
Pradhan Mantri Jeevan Jyoti: A life insurance policy of three lakhs, where the person will pay a premium three thirty rupees per year.
Start-ups will benefit
Healthcare start-ups might get a boost as Arun Jaitely reduces technology tax from 15% to 10%. As per Mr Shashank ND, Founder & CEO, Practo, ‘The financial allocation of Rs 1000 cr under the SETU – Self Employment & Talent Utilization program will drastically help boost the start-up ecosystem in India.’
Better healthcare for all
With a promises to set up an AIIMS-like institute in Jammu and Kashmir, Himachal Pradesh, Tamil Nadu and Assam the Finance Minister has shown a keen interest in improving healthcare for all. Apart from that he has also suggested a stable taxation policy to improve growth of the healthcare facilities in the country.
Better security for women
In an effort to make the country safe for women, Arun Jaitely has promised to add 100 crore more to the Nirbhaya Fund.
Agriculture gets a boost
Your veggies and food may become a little cheaper, with Arun Jaitely stating that the government will allocate 5,300 crore rupees to micro irrigation and the Chief Minister’s fund to help the agricultural industry and farmers prosper. Apart from that he has proposed that there will be electricity and healthcare in all villages and cities.
Negatives of the Union Budget
Lower spending on healthcare which is not as promised:
In one of the biggest blows to the healthcare sector, the Finance Minister has reduced the spending on public health this year. He has allocated only 33,000 crores to the healthcare sector in contrast to last year’s 27% jump. In a statement Dr Ajay Bakshi, CEO & MD of Manipal Health Enterprise said, ‘The allocation of Rs 33,150 crore towards the healthcare sector comes as a disappointment as the government has not kept up with its promise of increasing expenditure on public health.’
No new reforms for pharmaceutical companies so your medicines will not get cheaper
The pharmaceutical companies were left high and dry with not tax exemptions on budgetary reforms coming their way. According to Mr Amol Naikawadi Joint Managing Director, Indus Health Plus, ‘The pharmaceutical industry did not see any major changes from the budget. And there was no emphasis on research and development.’ All in all not only will medications not get any cheaper, but the research industry will also not see a drastic change.
No tax holiday for hospitals therefore hospitalisation will not become cheaper either
With an increase in service tax and no increase in the tax holidays for hospitals, hospitalization will not get cheaper and might become a bit more expensive due to the 2% increase in service tax.
Originally published on www.thehealthsite.com
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