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Healthcare Highlights in the 2024-2025 Budget: Cheaper Cancer Drugs and Medical Equipment Benefits

In the 2024-2025 Union Budget, the Union Health Ministry received an allocation of Rs 90,958.63 crore, reflecting a 12.96% increase over the previous year’s revised estimates of Rs 80,517.62 crore.

Finance Minister Nirmala Sitharaman, who presented the Union Budget on July 23, 2024, announced exemptions on customs duty for three cancer treatment drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

Despite this increase in allocation, the health sector did not receive any special mention in this year’s budget. Additionally, healthcare was not included in the nine pillars of ‘Viksit Bharat,’ which Sitharaman highlighted in her speech. These nine pillars are Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Services, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development, and Next Generation Reforms.

Key Health Highlights from the Union Budget:

Cancer Drugs Made Cheaper:

To provide relief to cancer patients, Sitharaman proposed full exemptions from basic customs duties for three additional cancer medicines. Previously, the Basic Customs Duty (BCD) for Trastuzumab Deruxtecan, Osimertinib, and Durvalumab was 10%. The new proposal sets the BCD rate to zero for these medicines.

Medical Equipment Including X-Ray Devices Made Cheaper:

Sitharaman proposed changes to the basic customs duty for X-ray tubes and flat panel detectors used in medical X-ray machines. This change aims to make medical equipment more affordable. The BCD for these devices will be reduced from 15% to 5% until May 31, 2025. From April 1, 2025, to March 31, 2026, the rate will be 7.5%, and from April 1, 2026, onwards, it will be 10%.

More Medical Colleges in Bihar:

The budget also announced the establishment of new medical colleges in Bihar. Sitharaman stated, “New airports, medical colleges, and sports infrastructure will be constructed in Bihar.”

Saturation Health Approach to Cover All Eligible People:

Sitharaman stressed the government’s commitment to comprehensive social justice by adopting a saturation approach. This approach aims to cover all eligible people through various programs, including those for education and health, to empower them by improving their capabilities.

Digital Public Infrastructure Applications in the Health Sector:

In the services sector, the Finance Minister proposed developing Digital Public Infrastructure Applications at a population scale. These applications aim to enhance productivity, create business opportunities, and foster innovation in areas such as credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance.

In contrast to last year’s interim Union Budget, which announced various health initiatives including nursing colleges and innovations in the pharmaceuticals and medical devices segments, this year’s budget has taken a different approach focusing on the affordability of essential medicines and medical equipment.

Click here to read/download the Finance Minister Budget speech

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