Mega Health Plan Predicted To Cost ₹1 Lakh Crore A Year – Jaitley Allocated 2000 Crores In The Budget

The healthcare plan for the poor announced in the Budget will cost about ₹one lakh crore annually and curtail States’ autonomy in designing their own policies in the sector, said a research paper authored by Assistant Professor Mita Choudhury of economic think tank NIPFP.

“Not only would such a scheme impose a heavy burden on both the Union and the States’ exchequers, it will also curtail States’ autonomy to design their own policies in a sector that is constitutionally mandated to be in their domain,” said the paper. The paper said that even if a “conservative 2% rate of premium on the insured sum” was assumed, the scheme would cost would be “about ₹one lakh crore annually.”

It further said: “Assuming that 60% of this burden would be borne by the Union Government and the rest passed on to the States, the Union Government would still need to fork out an additional ₹60,000 core annually.”

Source:The Hindu