The central government is preparing to create a separate fund for the health sector.
To strengthen the health infrastructure, the central government may announce a separate fund arrangement. It can be called ‘Prime Minister’s Health Promotion Fund’. The draft has also been prepared by the Ministry of Health.
- January 12, 2021, 2:41 PM IST
According to the proposal prepared, the Prime Minister’s Health Promotion Fund will be a kind of non-lapsable fund in the public account. This means that the funds held in the fund will not lapse at the end of a financial year. The funds received from the Health and Education Cess will be deposited in this fund.
Last year, 14 thousand crore rupees in the government’s name in the name of health cess
Currently, the central government deducts 4% from income tax and corporate tax in the name of education and health cess. Of this, 3 percent amount is education cess and the remaining one percent is health cess. In this case, 25 percent of the total amount received through health and education cess will be deposited in this fund. In the financial year 2019-20, on the basis of education and health cess, about 56,000 crore rupees came in the government’s bag. In this, the share of health cess was about 14 thousand crores. This fund will be used for the central government’s flagship scheme Ayushman Bharat, Health and Wellness Center, Pradhan Mantri Swasthya Suraksha Yojana etc. for the health sector.
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According to the proposal, initially the expenditure on any of the above schemes will be done with gross budgetary support (GBS). Once the GBS is exhausted, the proposed fund will be used. Sources said, the major benefit of this fund will be the availability of additional resources for universal and affordable health care.
The government will aim to spend 4% of the total GDP on the health sector by 2024. Currently it is 1.4 percent of the total GDP.