Karnataka government has allocated Rs 318 crore for the modernization of the healthcare sector in its budget 2007-08. In addition to upgrading of existing medical facilities, new centres of healthcare and medical-dental colleges, the government has proposed to develop Ramanagaram in Bangalore Rural District into a Health City.

In the budget presentation for 2007-08, the Karnataka Finance Minister BS Yediyurappa, who is also the deputy chief minister of the State stated that a new Medical University which will be establishing its administrative blocks, a constituent medical college, dental college and nursing college. The Medical University will also establish a super specialty hospital with 250 beds. The total project cost is estimated to be round Rs 283 crore and the Medical University will invest an amount of Rs 150 crore over the next three years. The state proposes to provide Rs 133 crore over three and allocate Rs 43 crore in 2007-08.

The highest allocation in the state budget amounting to Rs 107 crore has been made towards drug purchases.

An amount of Rs 45 crore is allocated to upgrade all the taluka hospitals in a phased manner into 100 beds wherever the bed strength is less. The state has already work on 45 hospitals and the remaining work will begin from April this year.

In order to extend the benefit of Out Patient Departments (OPDs) at the government hospitals, state has called for medical centres above 30 beds to start the OPD facility from 5.30 pm to 8.30pm on all five days of the week. For this service in the OPD, the doctor will be paid Rs 300 per day. The nurse and paramedical staff supporting the OPD will be paid an additional Rs 100 as honorarium for each day of service. These new measures are expected to increase the patient load, stated the Karnataka Finance Minister.

The government proposes to allocate Rs 5 crore to encourage the pregnant women to undergo the institutional delivery in public health care institutions. It will provide a medical kit containing all the required material for the mother and child for the next three months after delivery. The kit contain materials like mosquito net, soap, lotion and other materials required to facilitate hygiene maintenance.

In the area of medical education, a grant of Rs 65.5 crore is made for the completion of the three medical colleges. In 2006-07, the government had initiated the programme for setting up six new medical colleges. While the first phase is complete, the second phase is under the progress, stated the Finance minister.

On the occasion of the silver jubilee celebrations of the KMC Hospital in Hubli, the government has decided to develop the institution on the lines of PGI Chandigarh at a cost of Rs 100 crore and for 2007-08, a sanction of Rs 20 crore is made.

For upgrading the Bellary Medical College from the present 100 student capacity to 150, government has allocated Rs 8 crore. An additional Rs 8 crore is set aside for the construction of a Dental College in the same district.

It has also allocated Rs 1. 3 crore to modernize the nursing school at Gulbarga.

In Bangalore city, the government has sanctioned Rs 10 crore for setting up a General Hospital for the benefit of patients in Bangalore East at Indiranagar .

Going by the increasing number of diabetic patients among the poor patients, the government has allocated Rs 6 crore to set-up the Bangalore Diabetic Centre. In addition, the government has also set-aside Rs 3.5 crore to establish the Karnataka Nephrology Institute.

For the autonomous institutions like the Jayadeva Institute of Cardiology, Kidwai Oncology centre ad the Indira Gandhi Institute of Child Health, the allocation of funds ahs increased from Rs. 30 crore to in 2006-07 to Rs. 40.5 crore in 2007-08.