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Union Budget 2020: Rs 69,000 Crore Allocated for Health Sector

Union Budget 2020: Rs 69,000 Crore Allocated for Health Sector

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  • Ministry of Health allocated Rs 69,000 crore, including Rs 6,400 crore for Prime Minister Jan Arogya Yojana (PMJAY) in the Union Budget 2020
  • Ayushman Bharat gets a boost as hospitals to be developed under Public Private Partnership (PPP) mode in Tier-II, Tier-III cities

In the Union Budget 2020, Finance Minister Nirmala Sitharaman allocated Rs 69,000 crore for the health sector, including Rs 6,400 crores for Prime Minister Jan Arogya Yojana (PMJAY). The expansion of Ayushman Bharat scheme will see setting up more hospitals in Tier-II, Tier-III cities under the PPP model.

Focus of Budget 2020
The Ministry of Health and Family Welfare in 2020-21 gets ₹65,011.8 crore up from ₹62,659.12 crores in 2019-20. The Ministry of AYUSH has been allocated ₹2,122.08 crores and the Department of Health Research gets ₹2,100 crores.


Ayushman Bharat scheme was launched in the year 2018, which provides Rs. 5 lakh per family annually. As on November 25, 2019, about 114 million e-cards have been issued under the scheme, reveals the government.

"We need more in Tier-2 and Tier-3 cities for poorer people under this PMJAY scheme. It is proposed to set up Viability Gap funding window for setting up hospitals in the PPP (private-public-partnership) mode. In the first phase, those aspirational districts will be covered, where presently there are no Ayushman impannelled hospitals," said the Minister.

She further added: "This would also provide large scale employment opportunities to youth. Proceeds from taxes on medical devices would be used to support this vital health infrastructure."

"TB harega desh jeetga campaign to be launched to eliminate TB by 2025," said Finance Minister Nirmala Sitharaman

Key Highlights
  • Union Budget 2020 provides an additional of Rs. 69,000 crore for the health sector
  • The government to expand Ayushman Bharat Scheme, billed as the World's largest government-funded health insurance scheme
  • The Jan Aushadhi Kendra Scheme is gonna be expanded to all districts, offering 2,000 medicines and 300 surgicals by 2024
  • Mission Indradhanush has been expanded to cover 12 such diseases, including five new vaccines
  • In order to boost domestic industry and to generate resources for health services, the government has proposed a nominal health cess of 5% on imports of specified medical equipment
  • Under Ayushman Bharat scheme, the viability gap funding window to be set up to cover hospitals, with priority given to inspirational districts that don't have hospitals impaneled 20,000 hospitals have been impaneled under PM Ayushman Bharat Yojana
  • Machine Learning and Artificial Intelligence (AI) to be used in preventive healthcare for targeting diseases
  • The Finance Minister proposed to expand Jan Aushadhi Kendras in all districts of the country to provide medicines at affordable rates
  • Stressing on the health of mother and child, the government proposed to allocate 35,600 crores for nutrition-related programs that are to be launched in 2020-2021
  • Also, Rs. 28,600 crore in FY21 by the government for women-linked programs
  • To eliminate Tuberculosis (TB) by 2025

Stressing on the shortage of medical professionals in the country, the minister while announcing the Union Budget said, "There is a shortage of doctors in districts. The government proposes to attach a medical college with the district hospital in the PPP mode."

Union Health Minister Dr. Harsh Vardhan stated: "Budget estimates for the Department for Health and Family Welfare show an appreciable increase of 3.75%, while there has been a 10% hike in the allocation for the Department for Health Research. This indicates the strong focus of the government on the health sector. The Budget has positioned health as a prime mover in the journey of development and growth of the country.''

Stating that the focus of Budget 2020 is on medical infrastructure, human resources in the health sector, and holistic health and wellness the MInister said: "In addition to strengthening the medical infrastructure, about 6500 healthcare projects under National Infrastructure Pipeline (NIP) have been included. Also, to address the shortage of qualified doctors (specialist and general practitioners), it is proposed to attach a Medical College with existing District Hospitals in PPP mode. Those States that fully allow the facilities of the hospital to the medical college and wish to provide land at a concession would be able to receive viability gap funding from the Center."


Finance Minister Nirmala Sitharaman concluded that to overcome the shortage of doctors (both general physicians and specialists), she proposed a special bridge course to be designed, as there is a huge demand for teachers, nurses, paramedical staff abroad. Also, large hospitals are willing to offer DNB/SNB courses to increase specialist doctors.

Source: Medindia

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