The Union Budget 2024 has evoked a mixed response from the healthcare industry, with both optimism and concerns. Positive reactions include applause for the government’s proactive approach to combat cervical cancer through an HPV vaccination drive and the allocation of funds for expanding medical colleges and healthcare infrastructure.
The budget’s emphasis on private sector R&D funding was also praised. However, concerns were raised over the lack of a larger-scale plan to address immediate healthcare needs, with calls for higher GDP allocation, improved subsidized treatments, GST rationalization, and increased investments.
Industry leaders anticipate future discussions to focus on these concerns, urging the government to provide a more comprehensive and inclusive healthcare model in the next budget.
Commending the move, Dr Rama Joshi , Principal Director , Department of Gynae Oncology , Fortis Hospital, Gurgaon, ‘HPV vaccine aids in the primary prevention of cervical cancer which prevents the risk of HPV infection which is the cause of cervical cancers. It is most effective when given to adolescent between 9 to 14 years of age. Women between 27 to 45 years of age can get the HPV Vaccine, however getting it administered at these ages, reduces the effectiveness of the vaccine and should be taken after proper consultation with a gynecologist. HPV Vaccines have a success rate of 88%. In India, we have an indigenous vaccine for cervical cancer, manufactured by Serum Institute Of India priced at Rs 2200.’
Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare & President, NATHEALTH praised the forward-looking approach of the budget in addressing the shortage of healthcare professionals. He said, ‘The 2024 budget takes a forward-looking approach to healthcare. Establishing a committee to expand medical colleges within existing hospital infrastructure addresses the shortage of healthcare professionals and strengthens medical education. Additionally, the initiative to combat cervical cancer through HPV vaccination for girls aged 9-14 in six states is proactive in disease prevention. Extending Ayushman Bharat coverage to Anganwadi and Asha workers recognises their vital role in community health, and consolidating maternal and child healthcare schemes emphasises holistic well-being. Furthermore, the introduction of the U-Win platform for immunisation management, combined with intensified efforts like Mission Indradhanush, demonstrates a technology-driven approach to vaccination.’
However, it’s worth mentioning that some long-standing demands, like GST rationalisation and increased investments in the healthcare sector, needs to be addressed. We anticipate their consideration in the upcoming comprehensive budget, he added.
Ameera Shah, Promoter and Managing Director, Metropolis Healthcare appreciated the budget’s allocation of 1-lakh crore for private sector Research and Development (R&D) with 50-year interest-free financing. This move was seen as positive for encouraging innovation in the healthcare sector. She highlighted, ‘While the Interim budget takes commendable steps in healthcare, the 1-lakh crore allocation for private sector R&D with 50-year interest-free financing is positive for innovation. Strengthening healthcare infrastructure by establishing additional medical colleges effectively addresses the critical shortage of healthcare professionals. Equally noteworthy is the government’s initiative to launch a cervical cancer vaccination drive for girls aged 9-14 and consolidate maternal and child healthcare schemes under one program, demonstrating a proactive approach to preventive healthcare.’
Acknowledging these initiatives, we had hoped for deeper investment and resource allocation in the healthcare sector. India should prioritize and invest more in healthcare, exploring Public-Private Partnerships to enhance services without significantly increasing budgets. There is a need for regular and inclusive screening, along with more skilling courses for healthcare professionals to attract and upskill talent in the healthcare space. Additionally, the diagnostic sector requires a 0% GST on services and refunds for GST paid on inputs, she added.
Dr Sunny Jain, Sr Consultant & HOD – Oncology, Marengo Asia Hospitals, Faridabad reacting mentioned said, ‘I am of the firm view that cervical cancer vaccines should ideally be given before the first unprotected intercourse because females usually get infected by the Human papillomavirus (HPV) during act. The cervical cancer vaccine prevents and guards the women against the HPV virus-induced carcinoma cervix. We are happy that the government is making strong efforts towards cancer prevention and has encouraged cervical cancer vaccination for girls between 9-14 years of age.’
However, despite the positive aspects, concerns were raised by industry experts. Dr. B. S. Ajai Kumar, Executive Chairman, Healthcare Global Enterprises Ltd. expressed disappointment with the overall budget, citing a lack of a larger-scale plan to address immediate healthcare needs. He emphasized the need for a higher percentage of GDP allocation and improvements in subsidized treatments under schemes like Ayushman Bharat.
He said, ‘I am sorry to say I am thoroughly disappointed with the interim budget. To its credit, the government certainly means good by announcing its plan to set up medical colleges by utilising existing medical infrastructure or extending the benefits of Ayushman Bharat to ASHA and Anganwadi workers. The cervical cancer vaccination for girls aged 9-14yrs is certainly a prudent and proactive measure. Having said that, I don’t see any plan of a larger scale and scope that can address the multifarious healthcare needs on an immediate basis. Talking of schemes like Ayushman Bharat, there is an acute need to improve and upgrade the quality of subsidised treatments, but there has been no announcement to this effect.’
Further adding he said, ‘Like every year, we hoped the government would allocate a significantly higher percentage of GDP allocation, but again there has been nothing to cheer about on this front. We hope the next budget will take firm steps towards adopting an effective universal healthcare model in the form of unlimited pay-outs and make use of latest developments and advancements like targeted therapies even at the grassroots.’
While recognizing the positive strides in preventive healthcare, industry leaders collectively expressed anticipation for the next comprehensive budget to address the remaining challenges and provide a more comprehensive and inclusive healthcare model for the nation. The calls for increased investments, GST rationalization, and a more extensive healthcare strategy are likely to be focal points in future discussions.
