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HEALTH BUDGET 2011
First Budget
• On Nov 26,1947 RK Shanmukham Shetty presented the first budget of Independent India.
Some Interesting Facts
 Morarji Desai holds the record for presenting the maximum number of budgets
 He holds the unique distinction of presenting the budget twice on his
birthday (1964 & 1968)-both leap years
 Initially, budget papers were printed in Rashtrapati Bhawan.But in 1950,the budget papers were leaked
 Now it is printed in the basement of a North Block
DREAM OF FINANCE MINISTER
To make tax collectors are like honeybees collecting nectar from the flowers without disturbing them, but spreading their pollen so that all flowers can thrive and
bear fruit.
HEALTH BUDGET
• New Delhi, Feb 28,India’s health budget was presented
• Health allocation hiked by 20%.
• Last year, this was Rs. 23,530 crore. But this year Rs. 26,760crore has been announced for the sector which special focus on:
-Research
-Insurance cover for marginal workers
-Medical Education
HEALTH BUDGET
• To fill Human Resource Gap, highest allocation of Rs. 2,738 crore has been given to medical education, training and research.
• According to Planning Commission, India faces a shortage of about:
-6 Lakh Doctors
-1 Million Nurses
-2 Lakh Dental Surgeons and
-Large No. of Paramedical Staff
National Rural Health Mission
• Also called Government’s Flagship Programme.
• NRHM has been launched in 2005 has risen slightly-from Rs. 13,463 crore last year to Rs. 16,056 crore in this budget
• This Programme was launched with the aim of improving healthcare of the people living in remote areas.
• Their main focus is on 18 states.
Government Programmes
• Rashtriya Swasthya Beema Yojana provides health cover to marginal workers.
• But now this Yojana has been extended to Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and it
extends to:
-cover unorganized sector
-workers working in hazardous mining
-beedi workers and
-associated industries
Other Programmes
• Routine immunization Programme gets a small boost from Rs. 417 crore to Rs. 511 crore.
• Pulse polio immunization Programme has been reduced by half from Rs.1017 crore to Rs. 663 crore.
Expenditure On Public Health
• Seen a dip in the budget allocation.
• Last year, it got maximum focus with Rs. 2536 crore to tackle vector control diseases, mental health,TB and blindness
• But this year it comes down to Rs. 1906 Crore.
Some Other Changes
• Medical Bills go up by 5-10% in drugs and medical equipments.
• Homeopathy Medications cost too would go up.
• Medical Insurance premium also increases for a common man.
• Hospitals with more than 25 beds or having air conditioning services, will now be charging more.
• Custom Duty on Homeopathic medicines reduced from 25% to !0%.
• Excise Duty on sanitary and baby napkins reduced from 10% to 1%.
• Custom Duty on four specified life saving drugs and their bulk drugs is reduced from 10% to 5%.
• There is also 1% excise duty on vaccines and fluids including those used in Ayurvedic and Homeopathic
Service Tax
• Govt. impose 5% service tax on all the medical care and diagnostic tests conducted at Private Hospitals.
• But Small Hospitals with less than 25 beds are exempted from this service tax.
• Also, if you can pay for a Hospital with Air Conditining,you can afford to pay additional 5% tax to India's Govt.
Critical Evaluation Of Budget
• Total Disappointment from the Medical Fraternity
• Indian Govt’s spending on Health Care is just 0.9% of the GDP, is on of the lowest rates in the world. European Countries spend about 9%-11% of their GDP on Public Health.
• Govt. shamefully neglected its obligations to provide quality services to rural and urban area which has driven poor people to resort to Private Care.
• Govt’s spending on health care I India is less than what Asian Countries spend on health care like Chine and Indonesia.
• A service Tax makes the bills more dearer and impacts the Patients even more adversely.
-Pervez Ahmed,CEO Max Healthcare
• Finance minister also overlooked the demand for extending tax holidays to hospitals coming in Metros.
• Also, nearly 80% of the Country’s total health care spending is borne by Private Households which are at or above the Poverty Line.