BUDGET 2023: Indian Medical Association urges Govt. to address Finance Deficit matter in Upcoming Budget

The Indian Medical Association (IMA) has suggested that the funds for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) should only be used for strategic purchases and the creation of a retainer system in the private sector, not for critical funding gaps in government hospitals.

IMA stated in its proposal to the government for consideration in the forthcoming Union Budget that the most significant reason for the AB-PMJAY’s low penetration is inadequate funding.

The body of doctors stated that if the funding needs to be increased to at least the level of the CGHS (Central Government Health Scheme), then an amount of approximately Rs 1.6 lakh crore is required.

It stated that the amount of money currently provided is approximately Rs 12,000 crore, and that deficit financing at this level is impossible.

The IMA stated that the root cause of the unrealistically low package rates is an inadequate allocation of funds.

It went on to say that “AB-PMJAY should remove the unfair exclusion criteria for procedures that are imposed on private hospitals.”

Additionally, the IMA advocated for the establishment of a distinct welfare fund for physicians as a whole and for the “COVID-19 martyrs” in particular.

A zero-rate Goods and Services Tax (GST) on healthcare services, allowing service providers to claim an input tax credit, was proposed by the doctors’ organization to the government.

The service providers are not eligible for the input tax credit because healthcare services are exempt from the GST.

IMA stated that enabling this would ensure that input taxes would not be added to the cost of the services and provide patients with some relief.