Budget outlay on public health to go up to 2.5 per cent of GDP

29 Feb 2012

Government expenditure on public health would go up to 2.5 per cent of the country's GDP by the end of the 12th Plan, from 1.4 per cent at present, as the government steadily increases its priority for health care.

The decision was taken at a meeting of the Planning Commission held under the auspices of the Prime Minister's Office.

The meeting specifically focused on implementation of recommendations of the National Commission for Macroeconomics and Health (NCMH) and the high level expert group (HLEG) on health set up by the Planning Commission.

The prime minister has emphasised the need for increased outlay on health sector during the 12th Plan so that adequate funds are made available for the sector. He also stressed the need to create adequate capacity, both at the centre and the states, to meaningfully absorb the increased outlay.

Planning Commission has been asked to allocate adequate resources to achieve the target.

As health is primarily a state subject, the outlay of states for health would be critical in achieving this target. The Planning Commission may, in consultation with the health ministry, work out appropriate mechanisms to motivate and incentivise states to allocate more funds for the health sector.

The health ministry is working towards the goal of universal health care for all. The ministry plans to specifically focus on the following:

  • Free medicine for all through public health facilities under the National Rural Health Mission (The cabinet has approved the setting up of a Central Procurement Agency for bulk procurement of drugs).
  • Ministry may set up the CPA early and prepare standard treatment protocols.
  • Strengthen facilities at primary health centres, community health centres and district hospitals so as to provide a minimum package of care to all citizens through provision of cashless, hassle free diagnostic care and supply of essential medicines.
  • Strengthening of ambulance services to provide access to health services to far off and inaccessible areas.
  • Strengthening of enforcement mechanism of drug control.
  • The Drugs and Cosmetics (Amendment) Bill to be examined early so as to introduce it in Parliament soon.
  • Work closely with agencies dealing with social determinants of health like nutrition, safe drinking water, hygiene and sanitation and education in order to focus on prevention of disease and promotion of good health.
  • Creation of necessary human resources capacities at all levels.
  • An approach paper for induction of health managers and creation of a Public Health Cadre to be prepared for inclusion in the 12th Plan.
  • Creation of adequate number of doctors, nurses, ANMs and other paramedics.(Ministry may work towards getting the National Commission on Human Resources in Health (NCHRH) Bill passed by the Parliament early.
  • Plan roadmap for merger of all NRHM schemes to bring them under one umbrella, possibly by 2013-14.
  • Provision of the Clinical Establishments (Registration and Regulation) Act, 2010 to be operationalised early.
  • Work ion a National Centre for Disease Control to be completed in 2 years' time. The Integrated Disease Surveillance Project may be strengthened with setting up of public health laboratories in districts and states.