Budget 2022 Expectations: The Union Budget is set to be presented in just a few days and different industries, individuals and other around the country are anticipating changes in their respective area. With the Covid-19 pandemic still spreading its arms, the healthcare sector will be one of the most critical topics that might be discussed during the Budget session. Union finance minister Nirmala Sitharaman is set to present the Budget in the Parliament on February 1, and is expected to make announcements about the sector. Industry experts are expecting more concessions, stimulus and other such relief in the healthcare sector ahead of the budget.
Brokerage House AngelOne said in a note that there is a possibility that the government keeps the allocation of the healthcare sector in Budget 2022 the same as last year’s budget. In 2021, the government allocated an additional grant of Rs 35,000 crores was allocated for vaccination. “…we expect this year also this grant fully or partially may continue for vaccination for Children and booster shots,” said the firm.
“Increase in the credit line for the healthcare sector, given the ongoing pandemic, it is expected that the increase in the additional grants for the sector. For the hospital sector, an increase in incentive or additional depreciation for setting up a greenfield hospital can be a good move to improve the healthcare facility in India,” it added.
“With the pandemic, the healthcare bills are causing a dent in the consumers’ pockets. While some are expecting tax relief for Covid treatment, others expect an increase in the budgetary funding towards healthcare focusing on the underprivileged. In addition, focus on vaccination and grants to new vaccine development could also be expected,” said Sonam Srivastava, founder at Wright Research regarding budget expectations this year.
She added that PLI schemes for API developers, Medical devices, and GST reduction for medicine are also expected.
According to Abhay Agarwal, founder and fund manager of Piper Serica, said that the “abysmal healthcare infrastructure” of the country might make the government rely on the private sector. “Government will once again have to let the private sector come in and fill the gap by use of effective technology especially related to diagnostics. Incentives, in the form of tax breaks, will need to be provided to private players to encourage them to set up facilities in rural areas,” he said.
The GST applied on medical insurance is a travesty and needs to be removed, Agarwal said. “The government also needs to ensure that medical safety net in form of medical insurance is available to the widest population,” he opined.
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