Government today decided to increase its total health expenditure to 2.5% of GDP by the end of the 12th Plan, from the current 1.4%.
A high-level meeting chaired by Prime Minister Manmohan Singh also decided that the Planning Commission be requested to allocate adequate resources for the health sector to achieve the target, for which it could seek cooperation of the states.
During the meeting, convened on the direction of the Prime Minister and held at PMO, it was suggested that Planning Commission may motivate and incentivise states to allocate more funds for the health sector, for which it would work out an appropriate mechanism in consultation with the Health Ministry.
The Prime Minister emphasised the need for increased outlay to health sector during 12th Plan. He said, "though funds for the Health sector will not be a constraint, there is a need to create adequate capacity at the Centre and the states to meaningfully absorb the increased outlay."
With the Health Ministry working towards its goal of Universal Health Care, it was also decided that the Ministry may set up a Central Procurement Agency early for providing 'free medicine for all through public health facilities' under the National Rural Health Mission (NRHM) and prepare Standard Treatment Protocols early.
The Cabinet has already approved the setting up of the procurement agency.
The meeting specifically focused on implementation of recommendations of the National Commission for Macroeconomics & Health (NCMH) and the High Level Expert Group (HLEG) on Health set up by Planning Commission and listed various measures, including bringing important bills and legislations, to be implemented soon.
