“Whether Health is Wealth?” a Review of Union Budget 2025 towards Health Sector

There was an age old saying that “Health is Wealth” the current column analyses the Union Budget 2025 from that angle. The Union Budget has taken the investment perspective in three angles:

• Investment in People
• Investment in Economy, and 
• Investment in Innovation

The Union Budget while presenting, the Finance Minster quoted the great Telugu poet and playwright Gurajada Appa Rao’s quote that, “Desamante Matti Kaadoi, Desamante Manushuloi’; meaning, ‘A country is not just its soil, a country is its people.’ In line with this, the Government focused on Viksit Bharat 2047 with a thrust on achieving:

• Zero-poverty
• Farmers making our country the ‘food basket of the world
• Spurring Agricultural Growth and Productivity
• Development of MSMEs
• Increasing of Exports
• Development of Innovation

With the help of four powerful engines of the country  viz., Agriculture, MSME, Investment, and Exports keeping in mind these aspects budget allocations were made, 

Some of the significant allocations are:

The Saksham Anganwadi and Poshan 2.0 programme provides nutritional support to more than 8 crore children, 1 crore pregnant women and lactating mothers all over the country, and about 20 lakh adolescent girls in aspirational districts and the north-east region. The cost norms for the nutritional support will be enhanced appropriately.

Broadband connectivity will be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project.  Announcement of three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. 

Government has added almost 1.1 lakh UG and PG medical education seats in ten years, an increase of 130 per cent. In the next year, 10,000 additional seats will be added in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next 5 years. Government will facilitate setting up of Day Care Cancer Centres in all district hospitals in the next 3 years. 200 Centres will be established in 2025-26.

Government has been giving priority to assisting urban poor and vulnerable groups. A scheme for socio-economic upliftment of urban workers will be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life.

Medical Tourism and Heal in India will be promoted in partnership with the private sector along with capacity building and easier visa norms.

As per Constitution of India “Public health and sanitation, Hospitals and Dispensaries are listed in the State list of the Seventh Schedule. Constitution of India categorized various items under Union, State and Concurrent list. Concurrent list allows both State and Central Government to look after certain items like social security and social insurance; employment and unemployment, Welfare of labour including conditions of work, provident funds, employers’ liability, workmen’s compensation, invalidity and old age pensions and maternity benefits etc.,

Accordingly, both State and Central Governments can make budget allocations towards “Health Sector”. After Covid Pandemic, the disposable income towards Health increased enormously by individuals throughout the world and there is a great concern to make the appropriate investments towards health.  There are many Health Insurance Schemes operated by both Central, State Governments and Private Institutions too. For example, Ayushman Bharat a Welfare Scheme of Central Government covers all senior citizens aged 70 or above, regardless of economic status, are eligible for free medical treatment up to ₹5 lakh. Similarly, many State Governments have different welfare schemes based on poverty line. Whereas some of the Government employees either State or Central Government are covered under Employees Medical Insurance, the only section that is left is employees working under private sectors excluding industries and factories covered under ESI. For the Private Sector Employees, still Health Insurance is a nightmare, barring few welfare oriented private institutions, many private institutions have no allocations towards this vital portion, it is really a great concern, if any health risk arises to the employee, it could result in loss to both the employee and employer. The Governments initiative towards this end is Section 80D of the Income Tax Act, 1961, which stipulates that a tax deduction of up to Rs 25,000 each year for health insurance premiums and for senior citizens, upto to Rs 50,000. In addition to this an extra claim of Rs 5,000 for preventive health check-ups is given as a exemption in total salaried income and there is an 18% GST on Health Insurance Premiums. Making Health Insurance Premiums costlier to buy.  It is expected that “GST is removed on Health Insurance Premium”. Union budget 2025 is silent on this, hope this concern may be debated and deliberated to get a good clarity on this vital aspect. 

As per the population trends by 2035 India will have majorly aged (above 60 and 65) community, therefore we need to shift from the quote of Health is Wealth to  “Wealth to Health”. This can be achievable, if we follow again the great poet’s Gurajada Appa Rao’s quote “Swanta Labham Konta Manukoni Parulakoraku Patupadavoi” (means sacrifice some portion of profits for others well-being”. The Covid 2019 already taught a lesion to all of us.

(The views expressed here are personal)

Author-:

Dr. A. Lakshmana Rao

Associate Professor & HoD

Dept. of Commerce

Paari School of Business

SRM University – AP

AMARAVATI