PM orders more funds for health sector

New Delhi: The healthcare sector received a major boost today with the Prime Minister ordering massive increase in the outlay. The spending on the health sector has now been increased from 1.4% to 2.5% of the Gross Domestic Product (GDP) during the 12th five-year plan.

During a meeting, the Prime Minister stated that there is a need to create adequate capacity at the Centre and the states to meaningfully absorb the increased outlay, a release from the Prime Minister's Office said.

The meeting was called upon to focus on the implementation of recommendations of the National Commission for Macroeconomics & Health (NCMH) and the High Level Expert Group (HLEG) on Health set up by the Planning Commission.

The Planning Commission was requested to allocate adequate resources to achieve the target, the release said adding, "As health is primarily a state subject, the outlay of states for health would be critical in achieving this target."

The Prime Minister also proposed that the Planning Commission should motivate and incentivise the states to allocate more funds for the health sector.

Public spending on health was 0.94% of the GDP in 2004 and 1.1 per cent in 2010.