Union Budget 2024-25: Boost for Healthcare and Local Economies

The Union Budget2024-25, presented by Finance Minister Nirmala Sitharaman, has made significant strides towards strengthening the healthcare sector. The budget has proposed an increase in expenditure for the National Health Mission (NHM) by about Rs 4,000 crore, raising the spending from Rs 31,550 crore to Rs 36,000 crore for the fiscal year 2024-25.

The NHM, a Centre-sponsored scheme, primarily caters to primary and secondary healthcare service delivery in the country. The increased funding aims to invest in primary and secondary public healthcare facilities, thereby reducing the public’s out-of-pocket expenditure.

In addition to the increased expenditure for NHM, the budget has also proposed the development of digital public infrastructure (DPI) at a population scale. The DPI applications are expected to boost sectors including credit e-commerce, education, health, law and justice, logistics, MSME services, delivery, and urban governance. This initiative is a testament to the government’s commitment to empowering people by improving their capabilities through various programmes, including those for education and health.

The budget has also proposed to develop 100 weekly haats or street food hubs in select cities. This initiative is aimed at reviving local economies and enhancing the street food experience. This move is expected to provide a significant boost to the local economy and food sector, which has been struggling due to the ongoing global economic uncertainties.

In a bid to improve the affordability of cancer drugs, the budget has proposed the exemption of customs duty on three additional cancer medicines – Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. The Ministry of Health and Family Welfare (MoHFW) forwarded the request to the Ministry of Finance to aid in treating the 27 lakh cancer patients in the country. Trastuzumab Deruxtecan is used for breast cancer, Osimertinib is for lung cancer, and Durvalumab is for lung cancer and biliary tract cancer. The exemption of these drugs from customs duty is expected to make the drugs more affordable for cancer patients, thereby improving their survival rates.

The budget also proposed changes in the customs duty rates on X-ray tubes and flat panel detectors. This move is expected to boost the domestic medical device sector, contribute to component availability at lower costs, and reduce healthcare costs.

The Union Budget 2024-25, with its increased expenditure for the National Health Mission, the proposal for digital public infrastructure, and the exemption of customs duty on cancer drugs, is a significant step towards improving the healthcare sector in the country. The budget also focuses on other sectors such as local economies and food sector, thereby aiming for an all-round development of the country. This comprehensive plan is a testament to the government’s commitment to achieving social justice comprehensively and empowering the citizens of the country by improving their capabilities.