Union Budget hikes Health Min's allocation by Rs 2,766 crore

Focusing on the National Rural Health Mission, the government on Friday increased the allocation for the Ministry of Health and Family Welfare by Rs 2,766 crore, a part of which will go for conducting an annual survey to prepare the health profile of all districts.

"I propose to increase the plan allocation for the Ministry of Health and Family Welfare from Rs 19,534 crore to Rs 22,300 crore for 2010-11," Finance Minister Pranab Mukherjee said in his Budget speech.

He further announced that an Annual Health Survey to prepare the District Health Profile of all Districts shall be conducted in 2010-11.

"The findings of the survey should be of immense benefit to major public health initiatives particularly the National Rural Health Mission, which has successfully addressed the gaps in the delivery of critical health services in rural areas," he said.

Out of the total allocation for the health ministry, a whopping Rs 13,910 crore was for the government's flagship National Rural Health Mission.

Simplifying the duty regime on medical equipment, instruments and appliances, he prescribed a uniform, concessional basic duty of five per cent with full exemption from special additional duty on all medical equipment.

A concessional basic duty of five per cent is prescribed on parts and accessories for the manufacture of such equipment while they would be exempt from CVD and special additional duty.

Full exemption currently being given to medical equipment and devices such as assistive devices and rehabilitation aids would be being retained.

The Finance Minister exempted specified inputs for the manufacture orthopaedic implants from import duty.  The concession available to government hospitals or hospitals set up under a statute is also being retained.

The All India Institute of Medical Sciences (AIIMS) got a hike of Rs 2 crore in this year's Budget from Rs 11 crore in 2009-10 to Rs 13 crore in 2010-11.

The allocation of the Tobacco Control programme was increased from Rs 24 crore to Rs 39 crore.