Budget 2021 expectations from Healthcare Sector II Details Explained

Gautam Khanna, CEO, P. D. Hinduja Hospital & MRC says that in light of the pandemic's aftermath, priorities from the Union Budget 2021 focus on actions required to strengthen India’s healthcare system. One of the most important focus areas is building our healthcare infrastructure. We recommend that the government consider extending tax benefits under Section 35AD of the Income Tax Act, to hospitals having 50+ beds in Tier II and III cities, and 25+ beds in rural areas. This will also help in effective implementation of the Ayushman Bharat scheme through the additional hospital beds in underserved areas. In addition to this, it is a request to the government to provide tax incentives to hospitals and healthcare providers who are investing significantly in expanding care and diagnostic services.
 
The pandemic was a reality check on the urgent need to augment skilled workforce in the healthcare sector. The government should invest more into development of skills and expertise of healthcare professionals, and enable and encourage healthcare providers to do so. Gautam recommends that the budget offer a 100% tax deduction on stipends paid to professionals attending DNB and short-term PG qualification courses in private hospitals and laboratories, as is being provided in other industries. A robust workforce and infrastructure will help overcome the twin challenge of surging non-communicable and infectious diseases and keep us ready for any unfortunate, unforeseen pandemic in the future.
 

See Zee Business Live TV Streaming Below:

Gautam highlights to boost the National Digital Health Mission's adoption, we suggest that the government include a 250% deduction on investments made in Electronic Health Records and digital health technology, which will help provide improved accessibility and affordability of healthcare services, while maintaining their quality, for Indian citizens.
 
The exemption of GST on healthcare providers prevents hospitals from taking advantage of the input tax credit they pay. Gautam recommends a Zero GST rating for health care services, which in addition to ensuring that the credit chain is intact, would also ensure that input taxes are not loaded into the cost of healthcare services endured by patients.
 
It is recommended that within the next 7-10 years, public spending on healthcare be increased to 4.5% of GDP, with a greater allocation to preventive healthcare and health research.
 
Given last year's experience, India will see a greater emphasis on the health sector from all stakeholders and India will proceed at a much faster pace towards our vision of achieving universal healthcare for all citizens.