Finance Commission receives presentation on the Health Sector

New Delhi, Jan 14, 2020 : The 15th Finance Commission today received a presentation on India’s Health Sector. The presentation was given by Smt. Preeti Sudan, Secretary, Health & Family Welfare and Dr. V.K. Paul, Member, Niti Aayog in a meeting held in New Delhi today. Chairman, Sh. N.K. Singh and all Members of the Commission were present at this meeting along with senior officials.

The Department of Health & Family Welfare proposed to the 15th Finance Commission for untied funds to help in funding gaps in Primary Health care in the States. This, they said, would help States with significant funding needs and health lag to get more funds and priorities spending on health.

The Ministry also asked for performance based incentives – a Composite Health Index to be utilized to encourage States to demonstrate performance on year on year basis. The Ministry proposed a collaborative multi-sectoral non-ministerial approach by incorporating health impact considerations into the Government’s decision making process – Health in All Policies.

The Ministry projected the requirement of funds for a primary care for the purpose of addressing shortfall in infrastructure, health care professionals, supporting AB-HWCs, National Ambulance Service, and Funds for Medicines and Diagnostics. For a 5 year period, total of Rs.5,38,305.38/- crores fund has been projected.

In the light of the discussions today the Commission has asked the Ministry of Health & Family Welfare in consultation with Member, Niti Aayog, Dr. V.K. Paul to come up with revised proposals on the optimum utilization of finances in respect of sectors specific grants.

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