Budget hike falls short of addressing India’s growing health crises

Increase of 12.9 per cent in health allocation overlooks obesity epidemic and mental health challenges.

Healthcare workers check their computer screens at a hospital in New Delhi, India, June 22, 2023. | Photo Credit: Anushree Fadnavis

The 2024-2025 Budget, announced on July 23 by Finance Minister Nirmala Sitharaman, has allocated Rs.90,958.63 crore to the Union Health Ministry, a 12.9 per cent increase from Rs.80,517.62 crore in the revised estimates for the Health Ministry in 2023-24. Of this, Rs.87,656.90 crore has been allocated to the health and family welfare department and Rs.3,301.73 to the health research department. The allocation for the All India Institute of Medical Sciences, Delhi, has been increased from Rs.4,278 crore to Rs.4,523 crore.

The government also announced customs duty exemptions on three cancer treatment drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. In 2022, India reported over 14.13 lakh new cancer cases and 9.16 lakh deaths, according to a report released by the World Health Organization. The Finance Minister also reduced the custom duty rates on X-ray tubes and flat panel detectors.

The Economic Survey 2023-24, tabled on July 22 in Parliament, had raised concerns over two critical aspects of health: the rise in obesity and mental health crisis. It correlated the growing malaise of obesity in India with the consumption of processed food, sugar and fat and called for a healthier lifestyle. In order for India to “reap the gains of its demographic dividend, it is critical that its population’s health parameters transition towards a balanced and diverse diet,” said the survey.

Citing a report from the Indian Council for Medical Research, the Economic Survey observed that the rise in consumption of highly processed foods laden with sugars and fat, coupled with reduced physical activity and limited access to diverse foods, exacerbate micronutrient deficiencies and obesity. The percentage of men facing obesity in the 18-69 age bracket has increased to 22.9 per cent in NFHS-5 (National Family Health Survey) from 18.9 per cent in NFHS-4. For women, it has increased from 20.6 per cent (NFHS-4) to 24 per cent (NFHS-5).

The survey had also delved deeply into mental health, which it described as being “intertwined with all aspects of health, viz. physical, social, and emotional, and can be described as a state of well-being in which a person is able to cope with the stresses of daily life, continue to be productive and contribute to the community.” The allocation for the National Tele Mental Health Programme Rs.90 crore, an increase from has been increased from Rs.65 crore. The National Mental Health Survey 2015-16 showed that 10.6 per cent adults suffered from mental disorders in India while the treatment gap for mental disorders ranged between 70 to 92 per cent for different disorders.

“In the Indian context, the rising usage of the Internet on mental health has been indicated by a 2021 study on ‘Effects of using Mobile Phones and other devices with Internet accessibility by children’ by the National Commission for Protection of Child Rights, according to which 23.8 per cent of children use smartphones while they are in bed, and 37.2 per cent of children experience reduced levels of concentration due to smartphone use,” said the survey.

“The 13 per cent increase in the Health Ministry’s budget signifies a pivotal investment in the nation’s health, underscoring the government’s dedication to enhancing healthcare infrastructure and ensuring equitable access to quality care,” says Preetha Reddy, Vice Chairperson, Apollo Hospitals Enterprises Ltd. “The customs duty exemptions on three critical cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab—will make life-saving treatments more affordable, potentially improving survival rates for cancer patients. Additionally, reducing customs duty on X-ray tubes and flat panel detectors will lower the cost of diagnostic imaging, broadening access to essential medical diagnostics. The reduction of customs duties on cancer radiation equipment and life-saving devices is crucial and should be prioritised. This measure will significantly enhance access to essential healthcare services for all,” she added.

Highlights focusing on healthcare from Budget 2024-25

Rs.90,958.63 crore allocated to the Union Health Ministry.

• Rs.87,656.90 crore of this amount has been allocated to the health and family welfare department.
• Rs.3,301.73 crore of this amount has been allocated to the health research department.

Rs.4,523 crore has been allocated to All India Institute of Medical Sciences, Delhi.

Customs duty exemptions announced on three cancer treatment drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

Rs.90 crore has been allocated for the National Tele Mental Health Programme

A giant leap for space science

The Union Budget allocated Rs.13,042.75 crore to the space sector, especially for the development of space technologies: this is an 18 per cent hike from the 2023-2024 budget. “With our continued emphasis on expanding the space economy by five times in the next 10 years, a venture capital fund of ₹1,000 crore will be set up,” Sitharaman added.

The allocation for the Department of Biotechnology (DBT) has seen a cut from Rs.2,683.86 crore to Rs.2,275.7 crore. However, the sector had more than Rs.1,000 crore in unspent funds last year.