Budget 2024: IMA Urges Government to Increase Budget for Health Allocation Minimum by 2.5% of GDP

The Indian Medical Association (IMA)in a letter written to Finance Minister Nirmala Sitharaman on Saturday demanded an increase in allocation of financial resources in the upcoming budget for healthcare needs by a minimum of 2.5% of GDP. The association pointed out that allocations for healthcare needs vary from 1.1 to 1.6 % of GDP. This allocation, according to IMA is among the lowest in the world for the health sector.

However, IMA also demanded that other than increasing the allocation, the Finance Ministry should consider the expenditures incurred in health determinants like drinking water and sanitation separately. The numbers show that India’s overall health spending for both the public and private healthcare sector is currently estimated to be 3.8 % of its GDP. However, the IMA argued that the average health spending of lower than low- or middle–income countries is around 5.2 % of the country’s GDP.

Apart from increasing the allocated funds to a minimum of 2.5% of GDP, the body has also urged for tax-funded universal healthcare with basic packages for citizens, investment in public sector hospitals, allocation of 5 % of GDP for health, re-envision of PMJAY to cover outpatient care and other costs like that of drug and facilities for direct patient transfer, copayment, reimbursement models among others.

The IMA strongly feels that to achieve the goals of Viksit Bharat 2047 the health sector has to be promoted judiciously like the industries, education and agricultural sector. It also believes there is a strong need to review the health insurance regulations and GST.