MP Arora expresses concern over funds for Health Sector in Budget

Ludhiana, July 24, 2024: While participating in general discussion on Union Budget 2024-25 in the Rajya Sabha today, MP (Rajya Sabha) from Ludhiana Sanjeev Arora stressed on the need to take care of all the issues related to the health sector of the country. He pointed out that health sector is an important sector concerning to every Indian across the country. 

Arora said the only way forward is to increase the budgeted allocation for Health Sector and make health care affordable for all. He added to begin with he would request Finance Minister Nirmala Sitharaman to increase Budget Allocation to 2.5 per cent as mentioned in 2017 Report of National Health Policy. He also requested to the Union Health Minister, JP Nadda to use his good offices and get the needful done.

Starting his speech, Arora said India is ranked on 158th out of 196 countries on government health expenditure, according to the 134th Report of Standing Committee on Health and Family Welfare of the government. He added global healthcare expenditure in most of the countries is on an average 8% to 12% of GDP, whereas India, which needs the most, are still below 2%. He said it goes up to 17% in USA, but there could be some exceptions. He added he has taken most of the countries in the world which are 8% to 12%.

Further, he said it was the NDA government's target in 2017 that by 2025, on health 2.5% will be spent of GDP. It is mentioned in the National Health Policy drafted by the NDA government. But in Budget of 2024-25, it is less than 2%. 

He pointed out that out-of-pocket expense as per government record or government report is around 50%. This is as per national health accounts estimate. But this is far away from the truth for one reason that there is much of expenditure being done in shape of OPD, radiology, and pathology, and purchase of medicines which happens in cash, which is not reported, but the other side is reported in full. So, there is a private report, which says if we consider all these expenditures, out-of-pocket expenditure comes to 60%, which is extremely high. 

Arora said the world average of out-of-pocket expense is 18%. States like UP, which is bigger than many countries, out-of-pocket expenditure, and this is, again, government report is more than 70%. We are three times the global average as far as out-of-pocket expense is concerned. It is pushing many people into poverty. 

Adding, he said now, coming to the expenditure in budget. In FY23-24, budgeted estimate was Rs.86,175 crores, whereas revised estimate was Rs.77,624 crores, which means it is less than 2% of GDP, and then the amount being spent is still lesser than what is being shown in budget. He said underutilization of funds is not like Rs.1,000 or Rs.500 crores, it is Rs.10,000 crores. 

Further, he said, this time, the budgeted estimate for FY24-25 is Rs.87,656 crores, which is only 1% increase of the total budget of the total health expenditure from last budget. This is not even close to the inflation.

He thanked the Rajya Sabha Chairman Jagdeep Dhankhar for giving him a chance to speak on the budget. He also thanked MP Sanjay Singh for giving his turn to him to speak.