The PHD Chamber of Commerce and Industry plans to increase the allocation for the growing need for healthcare facilities and infrastructure across the country.
Saket Dalmia, President of PHDCCI, said: “PHDCCI recommends that due to the increasing need for health facilities and infrastructure across the country in different regions, it is important to substantially increase the health budget. We suggest that the health budget be increased in 30-40 percent in the next budget to sustain the sector’s growth plan.”
Dalmia said that with the increased budget, the main focus could be on a general campaign for healthy living, which is the need of the hour to develop a healthy human resource for the country.
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The importance of a healthy life must necessarily be included in the school curriculum. Local bodies, chambers and associations should organize awareness programs on diabetes and other lifestyle related diseases.
“To encourage the health and wellness technology industry, the GST rate on services and products that offer health benefits to individuals and belong to the health, wellness and AYUSH technology industry should reduced to 5 percent instead of the predominant 12 percent and 18 percent in most cases,” he said.
Along with a special focus on the production of APIs and medical devices to encourage Aatmanirbhar Bharat, the government should establish primary clinics at the Panchayat level and ensure their proper and regular operation.
They must be digitally equipped to facilitate telemedicine, added the president of the PHDCCI.
While underlining the health care burden due to tobacco in India which is around 1.04 percent of GDP, Professor Arvind Mohan, Professor and Head of the Department of Economics at Lucknow University, India, said that substantial increases in taxes on all tobacco items and stricter laws will not only bring out the best in human capital by ensuring better health for citizens.
Professor Mohan explained: “Currently, health is a major challenge for human development, as at least 70 percent of health spending is covered by the public itself, while government and global institutions only cover 25- 30 per cent”.
“But if we can reduce this spending by taxing tobacco products, we will not only be able to capitalize on our human resources, but also multiply GDP. This will also help achieve our dream of a $5 trillion economy.” Said Professor Mohan.
Dr. Pritam Datta, a fellow at the Delhi-based National Institute of Public Finance and Policy (NIPFP), stressed that while the main argument for introducing the GST in 2017 was that it would contribute 2% of GDP growth, actually this hasn’t happened
“These taxes also have the added advantage of ensuring better health outcomes, significantly reducing mortality and morbidity. And these health benefits would be disproportionately skewed toward low-income consumers,” Datta said.
Source: IANS
