Healthcare allocation in Budget 2024 should rise to 5% of GDP: Aster DM

Finance Minister Nirmala Sitharaman will present her seventh budget and first for third National Democratic Alliance government on Tuesday, July 23. Among many expectations from industry leaders from the upcoming Budget, Azad Moopen, founder and chairman of Aster DM Healthcare, has stressed on the need for increased investment in public health infrastructure and comprehensive reform in medical education.

Moopen has highlighted on the importance of boosting the healthcare sector's budget allocation to at least 5 per cent of GDP. "India has been progressing steadily in increasing investment in public health infrastructure, and we hope to see a significant increase in the healthcare sector's budget allocation to at least 5 per cent of the GDP. This is crucial to address the existing gaps and enhance the overall quality of healthcare delivery in India," he said.

Highlighting the urgent need for reform in medical education, Moopen advocated for the development of medical, nursing, and paramedical colleges across all 500 district hospitals in the country. While commending the last budget's announcement of nursing colleges alongside medical colleges, he delved the necessity of aligning medical education with contemporary healthcare needs.

Moopen called for continued support to foster a robust ecosystem for private sector participation in healthcare. He noted that the private sector plays a key role in supplementing the government's efforts, and initiatives aimed at enhancing medical education and skill development are essential for empowering healthcare professionals and improving service delivery.

The rapid growth of the healthcare sector post-pandemic underlines the need for extensive learning and development for future specialists. Moopen highlighted the need for financial investments to incorporate advanced technology, implement realistic strategies, and foster research-driven methodologies. He proposed establishing Central Medical Research and Innovation Institutes in every state to address issues like accessibility, equity, and healthcare costs. Additionally, he suggested the creation of a Central Digital Health and AI University and a dedicated university for NRI students.

Moopen also urged for concessions for NRIs residing abroad, including a reduction in TDS for those with income sources in India who pay taxes in their resident countries. He proposed affordable airline fares to SAARC and GCC countries to support trade and business collaborations, and the implementation of a health scheme for NRIs returning to India for retirement.