Union Budget FY25: FM allocates ₹89,287 crore for health

The government has allocated ₹89,287 crore for developing, maintaining and improving the country’s healthcare system, marginally higher from ₹88,956 crore in FY24. The government has also allocated ₹2,143 crore for PLI for the pharmaceutical industry.

Finance Minister Nirmala Sitharaman stated on July 23 that the government has also proposed the exemption of three more cancer medications from customs duties. Earlier in March 2023 the government had fully exempted Pembrolizumab (Keytruda), a Merck cancer drug used for cervical cancer, from basic customs duty. The government also exempted customs duty for foods and drugs used for rare diseases. Some of the rare diseases mentioned in the National Policy For Rare Diseases 2021 list include Wilson’s disease, cystic fibrosis and Pompe disease.

Normally, medicines attract a basic customs duty of 10%, while some life-saving drugs or vaccines attract a concessional rate of 5%, or are completely exempt from duties. Some drugs such as treatments for spinal muscular atrophy or Duchenne muscular dystrophy have already been exempted from customs duty.

The government has also proposed changes in the BCD on x-ray tubes and flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, to synchronise them with domestic capacity addition.

The government will operationalise the Anusandhan National Research Fund for basic research and prototype development and will also set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore in line with the announcement in the interim budget.

In the Interim Union Budget for 2024-25, presented earlier in February, the Finance Minister allocated ₹90,171 crore to the health sector for 2024-25, which was higher than the allocation of ₹79,221 crore in 2023-24.

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana allocation was raised from ₹7,200 crore in 2023-24 to ₹7,500 crore in 2024-25. Allocation for Pradhan Mantri Ayushman Bharat Health Infrastructure Mission was increased from ₹2,100 crore in 2023-24 to ₹4,108 crore in 2024-25.

Upgrades to Anganwadi centres under the ‘Saksham Anganwadi and Poshan 2.0 initiative were planned to combat malnutrition and enhance early-stage healthcare services. Healthcare coverage under Ayushman Bharat was extended to all ASHA workers, Anganwadi workers and helpers. Allocation for biotechnology research and development was increased from ₹500 crore in 2023-24 to ₹1,100 crore in 2024-25. CNBCTV18