Govt likely to set up Pradhan Mantri health fund in upcoming Budget

Centre, states to contribute to meet higher public spending target

Amid an overwhelming demand for a higher health care allocation, the government may set up a new fund to meet the public health spending target of 2.5 per cent of gross domestic product (GDP) by 2025. Both, the Centre and states would provide for the fund to achieve the goal, the Union Budget may propose.

At present, the country’s total health expenditure is 1.4 per cent of GDP — much lower than many emerging economies in the world.

The fund, if created, would be under the ‘Pradhan Mantri’ umbrella and will focus on both short- and long-term priorities of the