Govt to raise health outlay

The Prime Minister’s Office (PMO) has chalked out a multi-pronged strategy to increase government spending on health — to 2.5 per cent of the gross domestic product by the end of the 12th Plan (2012-2017) from — current 1.4 per cent, besides steps to incentivise states for increased expenditure in this critical area.

At a meeting called by the Prime Minister’s Office and attended by senior health ministry and Planning Commission officials on Wednesday, it was decided the health ministry would specifically focus on ‘free medicine for all through public health facilities, strengthening enforcement mechanism of drug control, approach paper for induction of health managers and creation of a public health cadre and a clear road map to merge all the National Rural Health Mission schemes, bringing them under one umbrella.

The Cabinet has approved setting up of a central procurement agency (CPA) for bulk procurement of drugs. The ministry will now set up the CPA quickly and prepare standard treatment protocols.

The other step envisaged in the meeting is strengthening of enforcement mechanism of drug control. The PMO has urged for early examination of Drugs and Cosmetics (Amendment) Bill so it is introduced in Parliament soon.

It has also been asked to work towards early passage of the National Commission on Human Resources in Health Bill in Parliament.