Given the Corona pandemic, the government may increase spending on health in the next budget. According to sources, Finance Minister Nirmala Sitharaman may double the health budget in the budget to be presented on February 1. The health budget in the current financial year was Rs 67,484 crore. This can be increased to 1.2-1.3 lakh crores. The finance minister may also announce some new health services in the budget.
1.2-1.3 lakh crores may be health budget in next financial year. In 4 years, 4% of GDP is targeted to be spent on health
Health cess now 1%, government can increase it
Sources said Sitharaman may present a plan for a four-year health budget aimed at taking India’s healthcare spending to 4% of GDP. The government may also increase healthcare cess to fund new programs. Currently it is 1% of the cess income tax and corporate tax. Every year the government gets about 150-160 billion rupees from health cess.
Germany spends most on health services
India spends only 1.3% of GDP on health services. It is targeted to increase to 4% of GDP in the next four years. This is significantly lower than developed and BRICS countries (Brazil-Russia-India-China-South Africa). Health accounts for 3.2% of GDP in China, 8.5% in the US and 9.4% in Germany.
Expectations from Budget 2021
- Hospitalization expenses may be approved for tax deduction due to corona epidemic.
- Due to corona epidemic, hospitalization expenses may be approved for tax deduction. Government may announce new national bank, will help in big infrastructure project.
- Government may announce a new policy to strengthen toy industry, plans to woo startups.
- Government may announce a new policy to strengthen toy industry, plans to woo startups
