By 2017, India’s health sector outlay will be 2.5% of GDP

Resisting pressures to cut down expenditures on social sectors ahead of the Union Budget, the central government on Wednesday decided to give a boost to health sector, deciding to increase the outlay from 1.48 % to 2.5% of the GDP by 2017, the end of the 12th Plan. The planned incentives include a minimum health care package to all citizens, free medicine and a dedicated health cadre attend to the health of nation.

A high-level meeting at the Prime Minister’s Office headed by the principal secretary Pulok Chatterjee including top officials from the ministries of health, finance and planning commission took stock of the implementation of recommendations of the National Commission for Macroeconomics & Health and the High Level Expert Group.

Realising that an young and healthy population was an asset for the country, the officials emphasised the need to create adequate capacity at the centre and the states to meaningfully absorb the increased outlays.

The Planning Commission was requested to allocate resources to achieve the target and also to motivate and incentivise the states to allocate more funds for the health sector. “For this purpose the Planning Commission in consultation with the health ministry will also work out an appropriate mechanism and scheme for this purpose,” said an official, who was part of the meeting.

The health ministry officials said they were working towards the goal of universal health care. The ministry was told to focus on a new initiative of providing free medicine through public health facilities under the National Rural Health Mission. The cabinet has already approved the setting up of a Central Procurement Agency for bulk procurement of drugs. The ministry was told to set up the CPA early and prepare Standard Treatment Protocols.

The high-level meeting also decided to provide a minimum package of care to all citizens through provision of cashless, hassle free outpatient, inpatient and diagnostic care and supply of essential medicines. Ambulance services will be strengthened to provide access to health services to far off and inaccessible areas.

Further, in order to focus on prevention of disease and promotion of good health, it was decided to prepare an approach paper for induction of health managers and creation of a public health cadre. The health ministry was also told to prepare a clear roadmap to merge all the NRHM schemes under one umbrella.