Enhance healthcare spending to 5% of GDP in upcoming budget: MP Arora to FM Sitharaman
Babushahi Bureau
Ludhiana (Punjab), January 27, 2025: While expressing his faith that the upcoming union Budget will reflect FM Nirmala Sitharaman's commitment to improving the Nation's healthcare landscape and protecting citizens from financial distress, MP (Rajya Sabha) from Ludhiana Sanjeev Arora has shot off a letter to FM requesting her to enhance healthcare spending to 5% of GDP.
Giving this information here on Monday, Arora said he has mentioned in his letter addressed to FM today, that he would like to draw her attention to his earlier correspondence and on his participation in various Debates on this issue of the urgent need for increased healthcare spending.
Arora mentioned in his letter that the escalating healthcare costs combined with systemic inefficiencies necessitate bold fiscal measures to ensure healthcare affordability and accessibility for all citizens. He added, “We are below 2% of GDP spent on health compared to around 10.32% Global average.”
Further, Arora mentioned that in the National Health Policy of 2017, it was recommended to be 2.5% of GDP by 2025. The recent State Bank of India (SBI) report highlights the need to raise healthcare spending to 5% of GDP to address systemic challenges. This recommendation comes in the wake of healthcare cost inflation of 14% last year, significantly outpacing general inflation.
With hospitalization rates rising by 12.8% in 2023-24 (ACKO General Insurance report) and the costs of critical medical procedures doubling since 2018, access to quality healthcare has become increasingly challenging.
This measure, according to the report, is crucial for addressing India's growing healthcare needs and nurturing social security.With strategic reforms, India can strengthen its healthcare infrastructure, promoting economic stability and improved well-being for its citizens.
In his communication, Arora suggested to align healthcare expenditure with the SBI-recommended target of 5% of GDP to strengthen infrastructure and reduce reliance on private healthcare providers. Healthcare is both a necessity and an enabler of economic growth.
He hoped that his suggestions would be accepted and implemented in the upcoming budget in the larger public interest.