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Union Budget 2010–11: Impact on Health Care
Satish Reddy, MD of Dr. Reddy’s Laboratories, said the recent budget allocation was “a positive and encouraging move,” given the fact that India figured low on various health care indices.
The Lows
However the budget invoked disappointments too, as no announcement was made regarding the promotion or setting up of new hospitals.
Dr Vishal Bali, CEO, Fortis Hospital says, “It is ironical that the budget provides for investment-linked deductions to the tourism sector but does not provide for any impetus for investments made in setting up new hospitals.”
While commending the finance minister on pulling India out of the global crisis Prathap C Reddy, Chairman of Apollo Hospitals, said that India needs one lakh more hospital beds in the next decade .He also said that the government should do everything to promote investment in this sector besides promoting skill development of doctors, nurses and paramedical staff.
His daughter and MD of Apollo Hospitals, Preetha Reddy said that although the budget was a progressive one, promoting security and stability in the health sector, there was little done for the rationalization of corporate taxes, especially for green -field projects. She pointed out that she was also expecting a tax exemption for the education sector, especially teaching hospitals.
One cannot help but appreciate the finance minister for all the measures that he has taken to improve the nation’s healthcare system especially of the rural sector and for people below the poverty line. If the budget seems to have invoked a mixed response, however its share of disappointments, it is, overall, a promising one! Proper utilization of the funds allocated will be a big challenge. If one looks at the accounts statement of Government of India from last year the number of project on which no fund has been spent so far are innumerable. For example Rs.15 crores were allotted for Telemedicine – no money had been spent till Nov last year. Similarly the Transplant programme was allotted Rs.1 crore – this was not utilized either. The question one needs to address is –are there are no takers for these projects or is it the inertia on the part of the departments or is it lack of knowledge that these funds exists. No one has an answer to these questions.
Ref-
http://www.mohfw.nic.in/Oct.2009/Data%20on%20Expenditure/
October%202009%20%28Actual%29%20Health.pdf.
Source-Medindia
Dr Reeja Tharu/S
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