Budget 2018: India’s health sector needs more funds and better management

Date posted: Thursday 25 January 2018

The growing reports of child deaths from different parts of the country since last summer’s Gorakhpur tragedy have finally put the spotlight on India’s growing healthcare crisis. Poor funding is one big reason behind the crisis but poor management of health funds is equally to blame. Notwithstanding a significant rise in allocation to the health sector in the 2017-18 budget over the previous year, the Union government’s spending on health and family welfare amounted to merely 0.3% of GDP (gross domestic product), budget data shows. One reason why the finance ministry may not have been impressed with the health ministry’s demands for more funds is because a good chunk of health funds remain unutilized. One reason for unutilized funds could be delays. Even where funds are channelled, quality of care remains poor. A key reason for the poor quality of public healthcare services in India is the lack of adequate data and monitoring. Clearly, more funds for the health sector need to be complemented with institutional reforms to ensure greater transparency and accountability.

(Live Mint)

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