There were mixed reactions from the industry captains on the Union Budget 2016-17 presented by Union finance minister Arun Jaitley on February 29. While some hailed the budget for focusing attention on the social sectors including health and higher allocation and spending to boost universal healthcare, there were critics also among the industry who said that there is no fundamental change to increase public healthcare spending.
Speaking on the Union Budget, Anjan Bose, secretary general, NATHEALTH said that 15 per cent increase in government spending on the social sectors with focus on healthcare should go a long way in ensuring universal health coverage. It is promising to note that the government intends to provide health insurance coverage to under privileged class through the new Health Protection Scheme of Rs.one lakh to cover unforeseen illness in poor families. This should also act as a catalyst for investment in healthcare sector and help in improving affordability and accessibility of quality healthcare.
Reacting to the budget, Satish Reddy, chairman, Dr. Reddy’s Laboratories, commented that the budget 2016 has been a mixed bag overall. The focus on infrastructure, rural development and social sector spending are important catalysts for boosting the economy’s growth rate. On the healthcare front, the budgetary emphasis on the sector was fairly muted. While certain initiatives such as the new health insurance scheme or the National Dialysis Services programme are good, perhaps a more holistic, well rounded thrust would have served the sector better in delivering good health to those in need of it. “The finance minister began his speech by articulating the 9 pillars on which his budget proposals were built, that would have a transformative impact on the economy and people. The social sector, including healthcare was in the top 5. We now look forward to a positive impact on this important aspect of India’s growth story,” he added. .
Pradeep Dadha, founder & CEO, Netmeds.com, said, “The Union Budget announcement of 2016 to make available quality medicines at affordable prices by reinvigorating the supply of generic drugs through opening of 3,000 stores in 2016-17 under Prime Minister's Jan Aushadhi Yojana, is a very welcome and innovative move by the government.”
Dr. Naresh Trehan, chairman & managing director, Medanta - The Medicity said, "The budget in my view was very thought through and well pointed towards the social sector. It brings great relief to farmers and people who are marginalised. The social scheme & the infrastructure movement forward to create jobs, so I think from that point of view at the base level it has done a lot, for the real ground realty people. As far as health is concerned, it’s a great move forward to insure every family for Rs.one lakh, which imminently gives them the security that they can access healthcare that was the idea how to create universal access. For elderly, its Rs.1.30 lakh which is even better.”
Vishal Bali, co-founder and chairman, Medwell Ventures , said, “Budget 2016 once again neglects the overall development of the healthcare sector. For a sector that has an intense demand supply gap, the finance minister has given it a cursory attention. There is no fundamental change to increase public healthcare spending and give it the necessary boost towards 2 per cent of GDP. The budget is also silent on Universal Healthcare coverage agenda which has been often discussed by the government. Healthcare should have been an integral part of the focus that has been given to infrastructure. Holding fiscal deficit at 3.5 per cent of the GDP is a good but healthcare given the miss as a national agenda."
“The FM has identified healthcare as one of the nine pillars for development and progress, and various proposals have been introduced. As a market, India is becoming ever-more critical for global healthcare companies,” said Anand Mehta, a partner with Khaitan & Co and its Pharmaceuticals and Healthcare practice.
Hisao Masuda, MD, Omron Healthcare India, said, “The budget looked at the healthcare as a key area for inclusive growth, however the focus has majorly been on health cover and palliative care. On an overall level, the government has introduced measures to ease implementation and development through the PPP model, but there is a need to initiate specific partnerships to upgrade healthcare infrastructure beyond urban areas. There is a clear need to focus on preventive healthcare in order to decrease the mortality rate and disease burden of the country.”
“The Union Budget 2016 proposal for healthcare covering weaker section of the society is a path breaking step. The proposed health coverage is to Rs.1 lakh per family and additional top up of Rs.30,000 for senior citizens below poverty line is essential to bring the poor under the healthcare umbrella. The budget also proposes setting up 3000 medical stores under Prime Minister’s Jan Aushadhi Yojana which is first of its kind initiative at such a scale. For these initiatives to reach the poor, successful implementation will be important,” said Dr. Om Manchanda, CEO, Dr. Lal PathLabs.
“The government’s announcement to launch dialysis service programme and open 3000 medical stores is a welcome move making basic healthcare more available to masses living beyond metros and tier 1 cities. Also, the government’s plan to provide tax holiday to startups will propel growth in the healthcare ecosystem by driving innovation amongst new-age entrepreneurs. Healthcare startups will now be able to take lead in breaking the archaic mode of providing services to the end customers making the entire healthcare experience to be easy and simple,” said Amit Mookim, services head, South Asia, IMS Health.
Commenting on the Budget, Hari S. Bhartia, co-chairman & managing director, Jubilant Life Sciences said that overall it is a very balanced Budget & would give a boost to growth sentiments & revive domestic economy. The finance minister has kept the fiscal discipline by keeping the budget deficit to 3.5 per cent in 2016-17. This will give greater confidence to investors, both in India and overseas.
“The needs of the pharmaceuticals and Ayurveda industry did not get much attention in the Budget. No clear cut incentive has been provided for promoting the manufacture of plant-based medicines in India using modern plants and technology, even though there are sops for the farming community and food processing industry. The government was expected to introduce several industry-friendly policies and incentives to provide a major push to the growth of the Indian bulk drug industry for it to be a formidable force globally. However, no major tax reforms (especially on the indirect tax front) have been announced by the government. A good thing in the budget is the announcement of a special patent regime with 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India. This will promote drug discovery in the private sector, especially in the Ayurvedic and phytomedicine segment which is expected to grow by leaps and bounds in the coming years,” said Raman Mehta, founder, Alchem International- leader in the field of phytoceuticals.
Ameera Shah, MD & CEO- Metropolis Healthcare said, “Overall a promising budget. Its heartening to see the fiscal discipline and a slew of initiatives for the under privileged. A lot of emphasis on infrastructure has set the right tone for overall economic reform. When it comes to healthcare, the Union Budget has rightly addressed the issue of unexpected healthcare expenses being a burden and pushing families in to poverty. The Health Protection Scheme and the Rs.1 lakh cover will surely help the families in need. However the budget has once again failed to address any kind of healthcare reform. It is important that the leaders from this industry are heard in the policy process where they can join hands with the government to spearhead more planned and regulated funds for health and healthcare. This by far has been the most disappointing budget for health. It is time that the government realizes that health is an important indicator of economic development and work towards an overarching vision for healthcare.”