The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has sparked a mix of reactions within the healthcare community. While there are commendable measures like customs duty exemptions on cancer drugs, prominent voices, including Indian Medical Association (IMA) President Dr. RV Asokan, have expressed concerns about the overall allocation for the health sector.
Key Highlights of the Budget
One of the notable announcements was the customs duty exemption on three cancer drugs, aimed at making these life-saving treatments more affordable for patients. Additionally, import duty reductions on X-ray components were highlighted, indicating a focus on enhancing diagnostic capabilities.

Mixed Reactions from Health Experts
Dr. R V Asokan, President of the IMA, pointed out that while these measures are positive, the overall health budget remains stagnant. “This budget is status quo for health concerns, with only two silver linings: customs duty exemptions on diagnostics and cancer drugs. The economy has moved from USD 3.4 trillion to USD 4 trillion,” he remarked.
Dr. Asokan emphasized that the national health expenditure remains at around 4% of the GDP, translating to approximately 13 lakh crores. However, the investment in health by governments has been static at 1.1% of GDP, with the central government contributing one-third and state governments two-thirds. Given the current USD 4 trillion economy, 1.1% of GDP amounts to 3.6 lakh crores. Considering inflation and economic growth, Dr. Asokan argues that the real allocation for health has effectively decreased.
He also pointed out that initiatives announced in the previous budget, such as HPV vaccination and sickle cell disease intervention, have not yet been implemented in the field, indicating a gap between policy announcements and on-ground action.
Praise from the World Health Organization
Dr. Roderico H Ofrin, the World Health Organization (WHO) Representative to India, offered a more positive perspective on the budget. He commended the customs duty exemptions on three cancer treatment drugs, viewing it as a significant step towards making treatments more affordable and accessible. Dr. Ofrin also appreciated the increased fund allocation for health, including AYUSH, noting it as a reflection of the government’s commitment to health promotion, disease elimination, and strengthening public healthcare services.
Conclusion
The Union Budget 2024 has brought to light both commendable steps and areas of concern within the healthcare sector. While measures like customs duty exemptions on cancer drugs are praised, the stagnation in overall health budget allocation has raised critical questions about the future of healthcare funding in India. As the nation continues to navigate its path toward improved public health, it remains essential for policymakers to bridge the gap between budget announcements and actual implementation, ensuring that the benefits reach the intended recipients.
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