India's Health Budget Funds To Shrink in 2014-2015
Shortage of funds is the only reason for cut in the healthcare expenditure. One of the health ministry officials reportedly said that, "No reason was given, but there is shortage of funds. It is not rocket science."
The reduction on healthcare spending is probably a part of the government's struggle to contain the fiscal deficit target within 4.1 percent of GDP for 2014-2015.
India's healthcare industry is growing at an annual clip of around 15 percent and public spending has remained low, which automatically resulted in reduced number of clinics and government hospitals especially in rural areas.
There are other speculations about the retrenchment that this could also be to derail an ambitious universal healthcare program that the PM wants to launch in April. The plan aims to provide all citizens with free drugs and diagnostic treatments, as well as insurance benefits. However, people can only hope that government will not run short of funds in case of any unfortunate crisis.
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