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Thursday, 19 May 2011

Planning Commission for hiking health expenditure to 2.5% of GDP by end of next Five Year Plan

With health getting less share in the original allocation for the11th Five Year Plan period and the utilisation again falling way below the target, the Planning Commission now wants to increase the allocation for health during next Plan period.
The expenditure on health by Centre and the States should increase from the current 1.3 per cent of the GDP to at least 2 per cent and perhaps 2.5 per cent by the end of the 12th Plan period, according to the initial notes prepared by the Planning Commission about the tones and quantum of the next Plan.
There is a desperate shortage of medical personnel and there is need for targeted approach to nursing colleges and other licensed increase seats in medical colleges. The quality of National Rural Health Mission should be improved according to the NRHM infrastructure. The role of public-private partnership in secondary and tertiary healthcare must be expanded. Health insurance cover should be expanded to all disadvantaged groups. Focus must be on women and children and the ICDS needs to be revamped, according to the initial assessment of the Panel.
The Panel has found that the current utilisation during the ongoing period was also below the target. Out of the total allocation of Rs.123,901 crore for the 11th Plan, only 61 per cent was used so far. At the start of the current FYP the expenditure on health was below 1 per cent of the GDP, but it has picked up to 1.1 per cent during 2009-10, as per the mid-term appraisal. As per the latest estimates, it is at 1.3 per cent of the GDP, but still much lower to the target of 2 per cent by the end of 2012, sources said.
The public discussions initiated by the Panel also attracted suggestions from the public that the quality of public healthcare systems was below the desired levels. Panel has prepared the concept note and taking inputs from the public through different platforms including social networking sites before finalising the directions of the next Plan.

Source:Pharmabiz

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