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It also said the government should allocate funds for training and development programmes for doctors | Photo: unsplash.com
NATHEALTH-Healthcare Federation of India on Tuesday asked the government to increase budget allocation on health to 2.5 per cent of GDP while also calling for a restructuring of the healthcare GST framework.
In its pre-Budget recommendations, NATHEALTH underlined the need for the government to embark on transformative measures that prioritise bolstering healthcare infrastructure and making strategic investments to overcome supply side constraints.
“India’s public healthcare spending remains low, at only around 1.6-1.8 per cent of GDP. These allocations are insufficient to tackle the magnitude of healthcare challenges,” NATHEALTH said in a statement.
On the need for rationalisation of GST for the healthcare sector, it said, “Although increased budget allocation has been a longstanding request from the sector, there remains another persistent issue concerning the healthcare credit chain through GST.”
Indirect taxation and lack of input credit for providers poses a significant challenge for the healthcare industry, NATHEALTH said, adding that it “strongly recommends outlining a reform agenda in the Finance Bill aimed at restructuring the healthcare GST framework”.
Raghuvanshi, who is also the Managing Director and Chief Executive Officer of Fortis Healthcare, further said, “It is crucial to focus on capacity building and training of healthcare professionals to meet the growing demands of our nation. These steps are vital for a robust and responsive healthcare system in India.”
The focus for boosting the value chain should remain on augmenting local capabilities to extend care to the most remote areas, while concurrently emphasising localisation, NATHEALTH said.
Additionally, harmonising global best practices necessitates integrated budget allocations for effective execution as well as safeguards for quality and patient safety, it added.
It also said the government should allocate funds for training and development programmes for doctors, nurses, and allied healthcare workers, putting special emphasis on digital learning stack and smart certification standards.
First Published: Dec 19 2023 | 3:12 PM IST
The NATHEALTH-Healthcare Federation of India has called on the government to increase budget allocation for healthcare to 2.5% of GDP and restructure the healthcare GST framework. In its pre-Budget recommendations, NATHEALTH emphasized the need for transformative measures that prioritize strengthening healthcare infrastructure and making strategic investments to overcome supply side constraints. The federation highlighted that India’s public healthcare spending remains low at only around 1.6-1.8% of GDP, which is insufficient to address the magnitude of healthcare challenges. NATHEALTH recommended increasing the budget allocation to 2.5% of GDP to enhance social insurance schemes, implement healthcare reforms, and accelerate digital health services across the country. Additionally, it called for the rationalization of GST for the healthcare sector, addressing the issues with indirect taxation and lack of input credit for providers. NATHEALTH also stressed the importance of capacity building and training for healthcare professionals and the need to focus on augmenting local capabilities to extend care to remote areas. The federation further emphasized the importance of harmonizing global best practices, allocating funds for training and development programs, and implementing digital learning and smart certification standards.,
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