Budget 2022: Healthcare Sector Likely to Get Top Priority Amid Covid Pandemic | Here’s What Experts Say

Budget 2022: Sharing its expectations from the Budget 2022, the Assocham said the healthcare sector is likely to receive the highest priority in the upcoming Budget 2022-23.

Budget 2022 Expectations: As Union Finance Minister Nirmala Sitharaman is set to present Budget 2022 on February 1, experts in the healthcare sector have pinned hope of an increase in the allocation in view of the COVID pandemic. At this crucial time, health has become the top priority for people and nations as well. Notably, the COVID pandemic has exposed several gaps in the existing healthcare infrastructure in the country. However, the Centre was quick to come up with reforms and policy levels to address the issues. Acknowledging the gaps in the health sector, the Centre has already launched several short-term and longer-term measures for the health system including the PLI scheme for boosting domestic manufacturing of medical devices under the Atmanirbhar Bharat initiative.

According to the Budget 2021-22, the total public health sector allocation stood at 1.2 per cent of the gross domestic product (GDP). The FICCI and KPMG report titled ‘COVID-19 Induced Healthcare Transformation in India’, released late last year, stated that the country needs to raise public health spending to 2.5 – 3.5 per cent of GDP to support healthcare transformation.

Sharing its expectations from the Budget 2022, the Assocham said the healthcare sector is likely to receive the highest priority in the upcoming Union Budget 2022-23 on account of continuing challenges posed by COVID and the imperative need for scaling up public health infrastructure. The Assocham in its report stated that MSMEs, energy and infrastructure and technology may also get priority.

Ashok Patel, CEO and Founder Max Ventilator, India’s leading ventilator manufacturer, told India TV that apart from the need to raise the share of healthcare as a proportion of GDP to at least 2.5 per cent in the upcoming budget, the government must build on its earlier policy incentives such as PLI schemes and dedicated medtech parks by increasing allocations.

Giving details, Nikkhil K Masurkar, Executive Director, ENTOD Pharmaceuticals, told India TV that the pharmaceutical and medical devices industry has gained a significant momentum owing to the government’s AatmaNirbhar Bharat initiative. He added that the Budget 2022 is expected to build on the Production Linked Incentive (PLI) schemes and encourage continued investments in capacity expansion of sensitive APIs, drug intermediates, complex excipients, biopharmaceuticals and medical devices.

Dr Shravan Subramanyam, Managing Director of Wipro GE Healthcare told Business Today, “We are expecting the 2022-23 Union Budget to also focus on investments in digital tools to support patient care and hospital workflow. To provide a fillip to the MedTech sector in 2022, waiving off the duty and CESS, and releasing sectoral payment dues will free-up the working capital for investments in inventory of critical spare and lifesaving equipment.”