The Modi Government stands firm on their plans to raise only 11% in the annual budget next month to raise India’s public health. They further rejected the Health Minister of India J. P. Nadda’s demand for a much bigger increase to uplift disease control. On the 26th of November, Nadda in a letter to the Finance Minister requested for a minimum budget of nearly $ 10 billion for the year 2018 to 2019. The requested minimum budget of $ 10 billion is said to be 33% higher compared to last year’s annual public health budget.
Nadda debated the increase in funds are required for expanding vaccination coverage, free drugs distribution and to ward off the growing threat of non communicable diseases. In 2016, diseases such as cancer and diabetes claimed the lives of around 6 million people in India. The Modi Government rejected his request and stated the health budget is expected to rise only by 11% and not 33%. Three Government officials stated the 11% rise by the Indian Government amounts up to $ 8.2 billion. The officials denied revealing their names as the discussions were confidential.
Last year, the Modi Government set a target of raising the annual health budget to 2.5% of India’s Gross Domestic Product (GDP) by 2025. The annual health budget spending in India is currently 1.15% as is said to be one of the lowest proportions in the world.
A Government Official said, “What’s the point of having a (2025) GDP target? With this funding, it still looks like a herculean task.” The Finance Ministry denied to comment on this and further the Health Ministry did not respond to the request for a comment. The health budget for the financial year ending March 2019 will be released on the 1st of February.
A member of the Prime Minister of India’s Narendra Modi’s Economic Advisory Council and Research Director at Brookings India, Shamika Ravi said she is not privy to the final budget members. She further added the $ 8.2 billion annual budget is not sufficient. Shamika Ravi said, “If we underspend on health, it will impact India’s overall GDP by lowering productivity in the long term.” Shamika further added she will continue to advise the Government to allocate more funds for health care to achieve its 2025 GDP target.
