Budget gives healthcare a boost

The Union Budget tabled by the finance minister today is expected to give a fillip to the health and pharmaceutical sector and has been received with much enthusiasm by the industry. The total spending on healthcare has been increased from Rs 13,390 crore last year to Rs 16,534 crore, a jump of 15 per cent, while the flagship National Rural Health Mission (NRHM) programme has been given Rs 12,050 crore. The Rashtriya Swasthya Bima Yojana, to be launched on April 1, seeks to provide a health cover of Rs 30,000 for every BPL worker in the unorganised sector.

The finance minister’s offer of a tax deduction of Rs 15,000 to individuals paying medical insurance premiums for their parents is also being seen as an encouraging incentive.

Besides, the budget has also announced a reduction of customs duty on specified life saving drugs and on bulk drugs used for the manufacture of such drugs from 10 per cent to 5 per cent, while totally exempting them from excise duty or countervailing duty.