Union Budget News: What the healthcare sector expects from Union budget 2022 | India Business News – Times of India
NEW DELHI: The Union budget 2022 is set to be presented on 1 February with different industries, individuals and others around the country anticipating changes in their respective areas. The healthcare sector will be one of the most critical sectors to be in focus this year.
The experts believe that the government, which had rightly placed health and well-being as the first of the six pillars in the Union budget 2021, is expected to continue the focus in 2022 as well.
Outlay for healthcare infra should be increased further
Since the hospital sector is at the forefront as Covid cases in India surge again, facilities in tier 2-3 towns need to be equipped with diagnosis centers, ventilators, ICUS, critical care facilities and oxygen plants, said Dr Ashutosh Raghuvanshi, managing director and CEO at Fortis Healthcare.
“There is an urgent need to allocate a separate budget for a national campaign around preventive health, testing and screening as these are key to reduce the overall disease burden in India,” Raghuvanshi said.
He also highlighted the fact that healthcare should be accorded priority status so that the sector can derive benefit from the GST transition and providers and healthcare service delivery institutions can avail loans at lower rates and extended tenure. “It is also essential that the government reduces duty and cess for critical care and life-saving equipment and drugs to reduce costs for both providers and patients.”
Investment across all the segments required
As the sector is on its way to recovering from the setback of the pandemic, greater investment across all the segments will encourage organisations to expand their capacities, said V Ashok, CFO at ACG, one of the leading pharma manufacturers.
“Bringing in new investments, incentivizing & supporting existing organisations with forward-looking policies, deduction in duties and reducing GST will bring down the overall cost of healthcare services which will benefit a large section of people in the country and encourage organisations to invest more in R&D,” said Ashok.
Considering, India is the largest exporter of pharma products, the government may look at providing appropriate RoDTEP rates to pharma products exported by the industry to encourage drug exports, he added.
Sector has not been able to derive benefits of GST transition
Dr Harsh Mahajan, president at the Healthcare Federation of India, believes the embedded taxes in the sector have increased in the post-GST regime compared to the pre-GST scenario. Therefore, it is vital to rationalise GST to unlock the embedded credit which is trapped in the healthcare value chain, he said.
Hoping govt to take some key fiscal steps
The Indian healthcare system has been dealing with its biggest challenge. In this context, Sanjay Vinayak, Founder and CEO at Connect and Heal, hopes that the government will take some key fiscal steps, beginning with simplification of GST conditions for all healthcare providers.
“Any organization delivering, facilitating, or coordinating healthcare services should be provided exemption from GST even if they are not clinical establishments themselves. Streamlining of these issues is critical for modern healthcare companies,” he said.
Apart from this, the primary healthcare sector continues to suffer from financial challenges, Vinayak said, “There is a need to qualify primary healthcare credit as priority sector lending for Banks. This is essential as the private sector needs to invest heavily into building a robust infrastructure. Another important area to focus is lower tax regime for the healthcare sector to encourage capital inflow.
The experts believe that the government, which had rightly placed health and well-being as the first of the six pillars in the Union budget 2021, is expected to continue the focus in 2022 as well.
Outlay for healthcare infra should be increased further
Since the hospital sector is at the forefront as Covid cases in India surge again, facilities in tier 2-3 towns need to be equipped with diagnosis centers, ventilators, ICUS, critical care facilities and oxygen plants, said Dr Ashutosh Raghuvanshi, managing director and CEO at Fortis Healthcare.
“There is an urgent need to allocate a separate budget for a national campaign around preventive health, testing and screening as these are key to reduce the overall disease burden in India,” Raghuvanshi said.
He also highlighted the fact that healthcare should be accorded priority status so that the sector can derive benefit from the GST transition and providers and healthcare service delivery institutions can avail loans at lower rates and extended tenure. “It is also essential that the government reduces duty and cess for critical care and life-saving equipment and drugs to reduce costs for both providers and patients.”
Investment across all the segments required
As the sector is on its way to recovering from the setback of the pandemic, greater investment across all the segments will encourage organisations to expand their capacities, said V Ashok, CFO at ACG, one of the leading pharma manufacturers.
“Bringing in new investments, incentivizing & supporting existing organisations with forward-looking policies, deduction in duties and reducing GST will bring down the overall cost of healthcare services which will benefit a large section of people in the country and encourage organisations to invest more in R&D,” said Ashok.
Considering, India is the largest exporter of pharma products, the government may look at providing appropriate RoDTEP rates to pharma products exported by the industry to encourage drug exports, he added.
Sector has not been able to derive benefits of GST transition
Dr Harsh Mahajan, president at the Healthcare Federation of India, believes the embedded taxes in the sector have increased in the post-GST regime compared to the pre-GST scenario. Therefore, it is vital to rationalise GST to unlock the embedded credit which is trapped in the healthcare value chain, he said.
Hoping govt to take some key fiscal steps
The Indian healthcare system has been dealing with its biggest challenge. In this context, Sanjay Vinayak, Founder and CEO at Connect and Heal, hopes that the government will take some key fiscal steps, beginning with simplification of GST conditions for all healthcare providers.
“Any organization delivering, facilitating, or coordinating healthcare services should be provided exemption from GST even if they are not clinical establishments themselves. Streamlining of these issues is critical for modern healthcare companies,” he said.
Apart from this, the primary healthcare sector continues to suffer from financial challenges, Vinayak said, “There is a need to qualify primary healthcare credit as priority sector lending for Banks. This is essential as the private sector needs to invest heavily into building a robust infrastructure. Another important area to focus is lower tax regime for the healthcare sector to encourage capital inflow.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
