Budget 2022 Expectations: The healthcare sector is one of the most important areas that might get the attention of the government during the Union Budget 2022, given the ongoing Covid-19 pandemic and the recent rise in cases fuelled by the Omicron variant of the coronavirus. Last year, the government had placed the healthcare sector ahead of everything, to aid the Covid-19 vaccination programme and the industry is hopeful that this year too they would get similar allocations when finance minister Nirmala Sitharaman presents the Budget for the next fiscal.
The Union Budget 2022-23 is set to be tabled by Nirmala Sitharaman on February 1 at 11 am, a day after the Budget session kicks off at the Parliament. Along with the healthcare sector as a whole, the health-tech sector also has its demands.
Tax Deduction on Import Duty of Diagnostic Equipment Required
As the healthcare sector is on its way to recovery with the government providing them support through the pandemic, experts feel that there is more room left for the government during Budget 2022.
“Tax deduction on import duties of diagnostic equipments, beneficial tax rates to attract investments and considering healthcare for zero-rated GST can be crucial steps by the Govt in the advancement of the sector,” said Dheeraj Jain, founder at Redcliffe Labs.
“Reduction of import duty on critical components required by the device manufacturers is an urgent area of attention. We hope the government takes care of these concerns and backs domestic medical device manufacturers,” said Runam Mehta, CEO of HealthCube.
Budget 2022 Must Focus on Holistic Approach Towards Healthcare
“We hope the Government of India will take some key fiscal steps, beginning with simplification of GST conditions for all healthcare providers. Any organization delivering, facilitating, or coordinating healthcare services should be provided exemption from GST even if they are not clinical establishments themselves. Streamlining of these issues is critical for modern healthcare companies,” said Sanjay Vinayak, founder and CEO and Connect and Heal.
The major focus of the Budget 2022 in regards to the healthcare sector should be increased healthcare expenditure to cater to the upgradation of medical infrastructure, opined experts.
“The budget should also promise investment in the development of ICU facilities, diagnostic laboratories, and Fertility Treatments as these medical expertise areas have the potential to attract revenues and become an important element in India’s overall growth,” said Dheeraj Jain, founder at Crysta IVF.
Allocations Towards Medical Equipment, Tools
“We hope the government will make sufficient budgetary allocations towards development of new tools and technology and manufacturing of cutting-edge portable diagnostic, remote monitoring and telemedicine equipment,” said Mehta, adding that there is a need for government-private collaboration in development and usage of advanced software-based solutions.
“Diagnostic companies to be specific are using advanced technologies in the early diagnosis and predictive analysis that give healthcare experts an early insight into complex health conditions. The upcoming budget is expected to be more focused on increased investments for R&D in terms of developing new technologies that enable faster and efficient healthcare delivery at affordable costs,” added Jain on Budget 2022.