Many believe that Finance Minister Nirmala Sitharaman can make some key announcements related to these industries in this year’s financial statement. As the date for the presentation of the Union Budget nears, the healthcare sector is likely to see increased allocation for the healthcare sector – across the entire infrastructure chain, specifically for immunisation. A slew of sops are likely, which may boost shares of hospital chains and drug makers, analysts said. All eyes will be on the expansion of PLI schemes.
Covid-19 exposed the vulnerability of the healthcare systems across the world against anything as critical and as global as the coronavirus. Nevertheless, due to the timely interventions from the government and the private sector and the hard work of the professionals, the healthcare sector emerged triumphant against the pandemic. However, the sector had to pay a heavy price for the win.
At the same time, the country rolled out one of the world’s largest vaccination programs reaching one billion doses by end-October. It has dealt relatively well with the latest surge of the Omicron variant, ramping up testing and preventing the chaotic scenes of the last pandemic wave. As the world moves from the pandemic to an endemic phase of the COVID-19 emergency, the upcoming budget is a good time to refocus priorities, restructure expenditure, and reframe outcomes.
In the previous budget, the government of India paid special attention to the healthcare sector and came up with several new programs and increased budgetary allocations for the sector. Prompted by several new developments, prevailing market scenarios, public perception, fear of new coronavirus variants, and several other factors, the healthcare sector is looking at the Union budget 2022 with great expectations and aspirations.
Higher Budget Allocation
Healthcare is expected to remain a prime focus for the government this year as well, amid the ongoing COVID-19 pandemic. Many reports suggest that the government could hike the outlay for the sector by 10 to 15 per cent.
Reduction of GST on Healthcare Products
Many healthcare providers are demanding simplified Goods and Services Tax (GST) norms, especially with regards to health insurance and life-saving equipment and drugs. Dheeraj Jain, Founder, Redcliffe Labs, said, “The ongoing pandemic has put the healthcare sector in the spotlight. The Govt of India has been very supportive to companies working in the healthcare domain. Diagnostic companies to be specific are using advanced technologies in the early diagnosis and predictive analysis that give healthcare experts an early insight into complex health conditions.
“The upcoming budget is expected to be more focused on increased investments for R&D in terms of developing new technologies that enable faster and efficient healthcare delivery at affordable costs. Tax deduction on import duties of diagnostic equipments, beneficial tax rates to attract investments, and considering healthcare for zero-rated GST can be crucial steps by the government in the advancement of the sector. Another welcome step would be to promote medical education in the country to increase the number of skilled healthcare workers which is the need of the hour,” he added.
Higher Investment in Healthcare Facilities and Infrastructure
Many in the healthcare sector believe that sustained investment in healthcare facilities is required to prepare the industry to deal with any future disasters or pandemics efficiently.
Jain said: “While the Government has reaffirmed its commitment to improve healthcare delivery methods and infrastructure in recent months, as well as taken significant strides towards its aim of “universal healthcare for everyone,” a more holistic approach needs to be taken. “
“The major focus of the Budget 2022 in regards to the healthcare sector should be increased healthcare expenditure to cater to – upgradation of medical infrastructure, shortage of medical manpower in India, improve healthcare funding with subsidized loans, training of the skilled workforce. The budget should also promise investment in the development of ICU facilities, diagnostic laboratories, and Fertility Treatments as these medical expertise areas have the potential to attract revenues and become an important element in India’s overall growth. Most importantly, depending upon the budget structure, insurance companies can play a vital role in covering fertility treatments under health insurance as only maternity costs are covered until now by the companies,” he further said.
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Source: News18