HEALTH SECTOR

ALLOCATION TO HEALTH
BUDGET 2022-2023 ISSUES
MINISTRY
 16% Hike in Allocation of budget YEAR AMOUNT (in crores)  Health sector expenditure 2.5 % OF GDP
 An open platform for National FY 20 (ACTUAL) 62397  5 lakh + deaths due to Covid-19.
Digital Health Ecosystem FY21 (BE) 65011  Approx. 1.3 hospital beds and 0.65 physicians per
 Mission Shakti, Mission Vatsalya, FY 21(RE) 78866 1000 patients which are vey low compared to WHO
Poshan 2.0 to be launched FY 22 (BE) 71268 standards.
 PM-DevINE has been launched FY 22 (ADDL) 17000  India imports 80 % of medical devices and High
 Upgradation of Anganwadis dependency on China for import of medical devices.

PROPOSED CHANGES IMPACT OF THE PROPOSED CHANGES TO BUDGET

 5 Year plan on increasing no of hospitals,
beds & necessary equipment in Hospitals,
Medical colleges both across rural and
urban areas.
 Focus on R&D to improve the quality of
Health Care services and manufacture
medical devices in India to become a
global leader.
 Increase in accessibility, affordability of health care for everyone
 Increase in Universal health Coverage
 Quality Healthcare for improvised Productivity of people, hence GDP.
 Decreasing the gap between Rich and Poor.
 Reducing Import Dependence on other countries,
 Better Preparedness of the country in dealing with unexpected crisis.
 Reducing dependencies on other countries especially China.
 MACRO-ECONOMIC IMPACT OF CHANGES

Y= C+G+I+NX

Y = Aggregate Demand
G= Government expenditure
I= Investment
NX= Net Exports= Exports-imports

 High Fiscal Multiplier -As per various studies, Fiscal multiplier is one of the highest for Health. So increased Government
spending would translate into a more effective increase in GDP of the nation
 Reducing Imports will increase Net Exports and eventually will contribute more towards GDP.
 Better Health means better labor productivity and increased income for households. With Increased income, families will
be willing to consume more . Also, marginal propensity to consume for lower income households is high.

References :
1. https://globalizationandhealth.biomedcentral.com/articles/10.1186/1744-8603-9-43
2. http://aei.pitt.edu/94359/1/PC-11_2018_cover.pdf
3. https://www.niti.gov.in/sites/default/files/2021-03/InvestmentOpportunities_HealthcareS
ector_0.pdf