₹ 69,000 crore provided for Health Care in Union Budget 2020-21

Viability Gap Funding Window proposed for Setting Up Hospitals under Prime Minister Jan Arogya Yojana in PPP Mode

Jan Aushadhi Kendra Scheme to be Expanded to all Districts by 2024

In order to achieve the holistic vision of health care that translate wellness of the citizen, about ₹ 69,000 crore have been provided for health care in Union Budget 2020-21. It includes ₹ 6400 crores for Prime Minister Jan Arogya Yojana (PMJAY).

While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman said, “presently, under PM Jan Arogya Yojana (PMJAY) there are more than 20,000 empanelled hospitals. We need more in Tier-2 and Tier-3 cities for poorer people under this scheme. It is proposed to set up Viability Gap funding window for setting up hospitals in the PPP mode. In the first phase, those Aspirational Districts will be covered, where presently there are no Ayushman empanelled hospitals. This would also provide large scale employment opportunities to youth. Proceeds from taxes on medical devices would be used to support this vital health infrastructure”.

Smt Sitharaman further said that health authorities and the medical fraternity can target disease with an appropriately designed preventive regime using machine learning and AI, in the Ayushman Bharat scheme. She said, “TB Harega Desh Jeetega campaign has been launched. I propose to strengthen these efforts towards our commitment to end Tuberculosis by 2025”.

The Minister for Finance and Corporate Affairs also announced to expand Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgicals by 2024.

Viability Gap Funding for hospital PPPs proposed to expand empanelment and strengthen public health infrastructure nationwide. The Budget allocates substantial funding for health care, including designated support for PMJAY, and proposes a Viability Gap Funding window to enable hospital creation in the public-private partnership mode-targeting Tier 2/3 cities and aspirational districts without Ayushman empanelled hospitals-funded in part by medical device tax proceeds; it also advances AI enabled preventive strategies, TB elimination efforts, and expansion of Jan Aushadhi Kendras to all districts with an enlarged medicines and surgicals list.