Budget 2025: Finance Minister Nirmala Sitharaman is set to present the Union Budget for fiscal 2025-26 on February 1. The expectations are building and healthcare industry expects expansion of healthcare schemes such as ayushman Bharat, increased Insurance penetration, emphasis on preventive healthcare, Tax releif for consumables and equipments
This year’s budget must take bold steps to prioritize the health and well-being of citizens by ensuring universal health coverage, reducing out-of-pocket expenditures, and creating a robust ecosystem for preventive and curative care, said Pankaj Tandon, Promoter, Founder & CFO, VitusCare
Ayushman Bharat and Health Insurance Coverage
The Union Budget 2025-26 holds immense potential to address long-standing gaps and pave the way for a more accessible and equitable healthcare ecosystem, said Tandon. Strengthening health insurance coverage under schemes like Ayushman Bharat, with an emphasis on including patient care and life-sustaining treatments such as dialysis, will be instrumental in reducing the financial burden on patients and their families.
Expanding the reach of health insurance to cover a larger segment of the population, particularly in rural and underserved regions, can help bridge disparities in care delivery. Subsidizing premiums for low-income families and incentivizing private sector participation will also ensure that critical healthcare services, including dialysis, become both affordable and accessible.
Preventive Healthcare
Emphasis on preventive healthcare is also crucial in reducing the long-term disease burden on the healthcare system. Increased investment in public health infrastructure, workforce training, and digital health innovation is essential for improving the quality and efficiency of care, said Tandon
Tax releif for consumables and equipments
Healthcare consumables and equipments should be included in the lowest and single tax bracket, as the healthcare industry is exempt from Goods and Services Tax (GST). This exemption prevents healthcare providers from being able to claim input credit on the taxes paid for these consumables. By placing healthcare consumables in the lowest tax bracket, it would reduce the financial burden on healthcare providers, ensuring that the cost of medical supplies remains more affordable and accessible, ultimately benefiting the healthcare sector and the patients it serves.
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