Expenditure on health likely to be hiked to 3 pc of GDP

New Delhi: Planning Commission deputy chairman Montek Singh Ahluwalia has said the government’s expenditure on health may be increased to 2 to 3 per cent of the GDP in the 12th Plan from one per cent during the current Plan.
“During the 11th Plan, the public expenditure on health was 1 per cent of GDP which is proposed to be in the range of 2 to 3 per cent in the 12th Plan,” Mr Ahluwalia said while addressing the ‘FICCI HEAL 2011’ conference here yesterday.He said the Commission will ensure that the allocation of resources to the health sector would be “significantly” increased in the 12th Plan. He said the report of K Srinath Reddy Committee, appointed to suggest universal health insurance coverage for all Indians, is expected to submit its report to Government by the end of this month. Under the proposed universal health insurance scheme, the premium may be linked to income levels of the beneficiaries, although the government may pay the entire premium for those below the poverty line. The scheme may encompass treatment at listed hospitals, apart from hospitalisation expenses. He said an alarming finding of the Census 2011 study conducted by the Registrar General’s office was the acute shortage of medical personnel. The qualifications of 50 per cent of doctors recorded in the Census documents shows that they do not have a degree beyond the secondary level, he said. Mr Ahluwalia called for taking up workable public private partnership schemes as such partnership was a cost-effective way for treatment in private hospitals.