Union Budget 2026 does little to reduce out-of-pocket expenses, medical inflation: experts
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Mains·
Why in news
Experts criticized the Union Budget 2026-27 for insufficient healthcare allocations and failing to address high out-of-pocket expenses and medical inflation.
Background
The Union Budget 2026-27 includes measures like eliminating Basic Customs Duty (BCD) on cancer medicines. Experts, including the former president of the Indian Medical Association, argued that these measures fail to lower costs for patients due to high overall pricing.
Facts for Prelims
- FactUnion Budget 2026-27 focuses on pharmaceuticals and AYUSH systems.
- FactBasic Customs Duty (BCD) was eliminated on cancer medicines in the 2026-27 budget.
- BodyIndian Medical Association (IMA) is a professional body of doctors in India.
For Mains
Q. Critically analyze the challenges in reducing out-of-pocket expenditures in India's healthcare sector despite fiscal interventions like duty exemptions.
Dimensions to cover in your answer
- Price-access gap: High retail pricing of cancer drugs persists despite the removal of Basic Customs Duty.
- Infrastructure deficit: Underinvestment in primary healthcare and public health infrastructure limits rural accessibility.
- Regulatory focus: Strengthening clinical research capabilities and regulatory frameworks to foster domestic medical innovation.
Keywords: out-of-pocket expenditure · medical inflation · primary healthcare · fiscal allocation · public health infrastructure
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