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Lesser budget allocation puts question mark on several pending new schemes for pharma
Joseph Alexander, New Delhi | Monday, March 4, 2013, 08:00 Hrs  [IST]

Notwithstanding several schemes including the revitalization of the Jan Aushadhi campaign in different stages of process and required higher outlay, the allocation for the Department of Pharmaceuticals (DoP) remains stagnant, as per the budget proposals for the next financial year.

With meagre outlay for the new schemes during 2013-14, it is unlikely that any of the proposed projects like launching the venture fund, setting up of GLP labs and animal testing labs, and boosting of the Jan Aushadhi stores would happen during the year.

The total allocation for the DoP in fact came down slightly from Rs.231.09 crore in the previous budget to Rs.228.33 crore this time. The revised allocation for the last year stood at Rs.121.79 crore, almost half of the budget allocation. The plan content of the outlay this time is Rs.188 crore while the non-plan expenditure would be Rs.40.33 crore.

What puts question mark on the new schemes is the total allocation earmarked under the head of 'others' which will usually be utilized for all new schemes for the pharmaceutical sector. The allocation stands at Rs.62.84 crore, against Rs.67 crore in the last budget.

According to the budget document, 'others' will cover “various new schemes towards technical upgradation and R&D in the field of pharmaceuticals to be undertaken during the 12th Plan, including Jan Aushadhi Scheme”.

The DoP, on the other hand, had made an ambitious project to revamp the Jan Aushadhi scheme with Rs.100 crore. But going by the allocation, no such plans would take off immediately.

Likewise, the National Pharmaceutical Pricing Authority (NPPA), which has planned a number of activities and schemes, also failed to get any big increase in the allocation. The budget outlay for the agency stands at Rs.11.71 crore, against Rs.10.35 crore in the previous budget.

Hence the agency, which will be a vital cog in implementing the new pharmaceutical pricing policy, will not have greater resources or will not be in a position to implement many of the pending schemes like strengthening the state cells and holding consumer campaigns.

In the case of the NIPERs.including six new ones, the allocation will not suffice for the proposed works to put them on the track this year. Against Rs.102.75 crore in the last budget, the Finance Minister has proposed Rs.93.27 crore this time.

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