India's Health Budget Funds To Shrink in 2014-2015


BENGALURU: The current fiscal strains have forced the government to cut a near 20 percent in its 2014-15 healthcare budget. India is already a country that spends minimum public spending. Considering this fact, the announcement comes as bad news, putting at risk the key disease control initiatives in a country whose public spending on health is already among the lowest in the world.

According to the Reuters report, two health ministry officials said that more than 6000 crore rupees have been slashed from their budget allocation of around 31,640 crores for the financial year which ends on March 31.

It is fascinating to find that despite the rapid economic growth over the past two decades, both the BJP and UPA II have kept a tight rein on healthcare expenditure. India has so far been spending about 1 percent of its GDP on public health, compared to 3 percent in China and 8.3 percent in the United States of America.

However, there were high hopes from Modi, who is on a reforms spree tapping all the departments since his inception into the PMO. He also doesn’t seem to be keen on upgrading basic health infrastructures and making medical services more affordable for the poor. Healthcare doesn’t seem to be a priority for any party that is in power.

Also Read: Prime Minister Narendra Modi To Brainstorm With Bankers On PSB Reforms On January 3

10 Great Money Resolutions For 2015!