NATHEALTH Calls For Boosting Budget Allocation On Health To 2.5% Of GDP, Restructuring Healthcare GST Framework

The healthcare representative body suggested the govt to enhance the budget allocation to help expand the social insurance schemes, boost healthcare reforms, and infrastructure.

It noted that indirect taxation and lack of input credit for providers remain a major challenge for the healthcare industry.

NATHEALTH, a forum that represents all healthcare stakeholders in India, urged the Indian government on Tuesday to increase budget allocation on health to 2.5 per cent of the gross domestic product (GDP). The entity called for a restructuring of the healthcare GST framework. 

Giving its pre-Budget recommendations, NATHEALTH stressed that the government needs to undertake transformative measures to prioritise strengthening the healthcare infrastructure and make strategic investments to overcome the constraints on the supply end, reported PTI. 

The body in its statement said, “India's public healthcare spending remains low, at only around 1.6-1.8 per cent of GDP. These allocations are insufficient to tackle the magnitude of healthcare challenges.” As recommendations, it suggested the government to enhance the budget allocation to 2.5 per cent of the GDP to help expand the social insurance schemes, boost healthcare reforms, and infrastructure, and fast-track the digital health services across the country. 

Elaborating on the need for rationalisation of GST for the healthcare sector, the association said that while a boost in the budget allocation has been a request from the sector for a long time, another important issue has been regarding the healthcare credit chain through GST. 

It noted that indirect taxation and lack of input credit for providers remain a major challenge for the healthcare industry. It strongly suggested that the Finance Bill should outline a reform agenda to restructure the healthcare GST framework. 

“India's healthcare demands urgent and strategic reforms. I advocate for increasing our healthcare budget to 2.5 per cent of GDP, rationalising the GST framework, and strengthening our healthcare value chain. It is crucial to focus on capacity building and training of healthcare professionals to meet the growing demands of our nation. These steps are vital for a robust and responsive healthcare system in India,” stated NATHEALTH President, Ashutosh Raghuvanshi. He is also the managing director and CEO of Fortis Healthcare. 

The healthcare body further called for a focus on strengthening the value chain to help elevate local capabilities, which would in turn facilitate providing care to the most remote areas. It also stressed that the government should disburse funds for training and development programmes for doctors, nurses, and allied healthcare workers.