Indian Medical Association Urges Higher Health Budget Allocation

The Indian Medical Association has called for a significant increase in financial resources for health in the budget, advocating a tax-based financing system. The body emphasized that the current government spending is among the world's lowest and demanded investments in public hospitals and a 5% GDP allocation for health.

The Indian Medical Association (IMA) has pressed for a substantial increase in financial resources for the health sector, advising the adoption of a tax-based health financing system. In a letter to Finance Minister Nirmala Sitharaman, the IMA pointed out that current health expenditure by the government, ranging from 1.1% to 1.6% of GDP, is one of the lowest globally.

The medical body stressed that government spending on health needs to be separated from expenditures related to health determinants such as drinking water and sanitation. They called for a minimum health allocation of 2.5% of GDP. India's combined public and private health spending currently stands at 3.8% of GDP, lower than the 5.2% average for low- and middle-income countries.

Among its key demands, the IMA advocated for tax-funded universal healthcare, enhanced investments in public hospitals, and a redesign of the PMJAY scheme to cover outpatient care and drug costs. Additionally, the body suggested new financing support for hospital projects and subsidies to assist with cash flow issues. Criticizing the complexities of the third-party payer system, the IMA warned that it is leading to detrimental effects on India's healthcare system by imposing indirect price controls and causing ethical distortions.

(With inputs from agencies.)