NAC unhappy over reduction in allocation to healthcare

NAC members, at a meeting chaired by Gandhi, conveyed their concerns over the reduction in allocation for healthcare sector -- from 2.5 per cent assured earlier to 1.58 per cent of the GDP -- to Union Health Secretary P K Pradhan, a member said.

The Approach Paper to the 12th Plan had indicated the government should raise total health expenditure to 2.5 per cent of the GDP by the end of the Plan.

However, the draft chapter on health indicates a total public investment on health in the 12th Plan to be only 1.58 per cent of GDP as against the suggested 2.5 per cent.

Pradhan made a presentation before the NAC on the universal healthcare plan as envisaged by the government which was in broad agreement with the suggestions of the High Level Expert Group set up by the Planning Commission.

Planning Commission Secretary Sindhushree Khullar, who was also present at the meeting, said that the Planning Commission was keen on having a convergence on all issues related to healthcare, which includes matters related to water, sanitation and nutrition.

After the presentations, Gandhi set up a working group on healthcare to draw up a plan to roll out the ambitious scheme and also to address the difficult areas like financing and how to enhance it.

NAC members Mirai Chatterjee and A K Shivakumar will be the co-convenors of the new working group.

They are also likely to meet Planning Commission Deputy Chairman Montek Singh Ahluwalia to understand the reasons for the cut in allocation for healthcare.

The Health Ministry too had raised serious objections to the Planning Commission's 12th Plan draft, insisting that public spending on health be pegged at least at 2.5 per cent of the GDP and should be further enhanced to 2.85 per cent of the GDP by the end of the plan.