One of the most appreciable things about the budget is that the FM recognized the
importance education and healthcare play in the overall welfare of the nation by calling
them as high priority sectors for the government. The budget is geared to create
opportunities for growth and offers incentives for the vulnerable and marginalized
sections of the society, such as women, the aged and the poor.
Dr. Prathap C. Reddy, Chairman, Apollo Hospitals Group said, "Significant allocations
have been made for rural development, health, sanitation, education, skill development,
science, and R&D. The budget is directionally good on healthcare, but nothing specific was
announced to spur investment in the sector. The allocation of Rs. 37,330 crore for the
Ministry of Health and Family Welfare, up from Rs. 30,477 crores in 2012-13, almost
one-fourth increase, is a very good development. Yet, even with this, the overall
percentage of GDP for health will not cross 2 per cent. This is one of the lowest in the
world and can only suffice to manage primary healthcare. The increase should have been 200
per cent. Few years ago, the union government imposed education cess of 3 per cent.
Similarly, 1 per cent cess for healthcare would have been a good methodology to bridge the
gap between what is required and what is available in terms of number of beds, doctors and
paramedics.
Good healthcare is not possible without the availability of an adequate number of
doctors, so it was nice to note that the six AIIMS-like educational institutions have
admitted their first batch of students. The concerns of the aged have also been kept in
mind by allocating Rs. 150 crore for the national healthcare programme for the elderly.
Healthcare has continued to be in the negative list of service tax, which is a thumbs-up
for the industry."
About Rs. 4,727 crore has been allocated for medical education and research, which
will help address the shortage of healthcare professionals, but much more is needed
considering the size of the country. Similarly, the budget has allocated around $1.9
billion to combat the menace of malnutrition by subsidizing the sale of grains to nearly
70% of India's population. If implemented correctly, this can be a game-changer in
ensuring health of the poor.
"In another positive move, insurance companies are going to be empowered to open
branches in tier II cities without prior IRDA approval and banks will be allowed entry
into the insurance sector. This will help the penetration of health insurance beyond the
metros," Dr. Reddy added.
However, there was nothing specific in the budget for the healthcare industry as such,
especially the private players, and for creation of health infrastructure where there
still exists a large gap.
Last year, the government did a good thing by allowing 150% depreciation for new
hospital projects with at least 100 beds. This should also be extended to hospitals
dedicated to treatment of non-communicable diseases consisting of 50 beds and above.
The five-year tax holiday scheme under Section 80IB for healthcare projects needs to
be extended from the present 5 years to 15 years because of the long gestation periods
involved in turning around new hospitals. The FM has proposed an investment allowance of
15 per cent for plant and machinery for the manufacturing sector. The government has to
clarify if this includes services too. In healthcare, we incur huge capex for new beds and
recurring capex for acquiring new technology. This allowance needs to be extended to
services too, particularly healthcare.
The FM has taken some good steps to facilitate government expenditure in healthcare
and he has to be commended for it. But given the need for a huge capital outlay and new
infrastructure required, the government still needs to do substantially better in terms of
availability of funds and creating an enabling environment for healthcare providers.
About Apollo Hospitals:
In 1983, Dr. Prathap C. Reddy, the architect of Indian healthcare, launched the first
corporate hospital in India, Apollo Hospitals Chennai. Over the years, Apollo Hospitals
Group has grown to become one of Asia's largest integrated healthcare organizations with
over 8,500 beds across 50 hospitals, more than 1350 pharmacies and over 100 diagnostic
clinics. The Group also offers medical business process outsourcing services, health
insurance services and clinical research divisions with a focus on epidemiological
studies, stem cell research and genetic research. To develop talent for the burgeoning
need of superior healthcare delivery, Apollo Hospitals Group has 11 nursing and hospital
management colleges. These achievements have earned Apollo Hospitals Group several
accolades, including the Centre of Excellence from the Government of India and recognition
from the Joint Commission International (seven of our hospitals are JCI accredited). In a
rare honour, the Government of India issued a commemorative stamp in recognition of
Apollo's contribution, the first for a private healthcare organization. Apollo Hospitals
Chairman, Dr Prathap C Reddy, was conferred with the prestigious Padma Vibhushan, in 2010.
Apollo Hospitals Group, for over 29 years, has continuously excelled and maintained
leadership in medical innovation, world-class clinical services and cutting-edge
technology. Our hospitals are consistently ranked amongst the best hospitals globally for
advanced medical services and research.
For more information visit www.apollohospitals.com [http://www.apollohospitals.com ].
Primary Media Contact: Parul Chhabra, parul_c@apollohospitals.com, 91-9810588410
Secondary Media Contact: Kusum Sahijpal, kusum_s@apollohospitals.com, 91-9999973090
