Budget 2023: Did Healthcare Get a Healthy Look-In? Let’s find out

Budget 2023: Modest Hike in Healthcare Sector Allocation

The coronavirus pandemic wreaked havoc all over the world. India was no different. The healthcare sector of the country was on the brink of collapse and there was a massive loss of lives.

With complete recovery from the travails of the pandemic still not complete, the Government has been increasing its focus continually to improve the healthcare sector in the country.

In such a scenario, the Government’s modest rise in the healthcare budget can be a bit concerning.

The Union Budget has allocated an amount of Rs 88,956 crores for 2023-24. This indicates a rise of 2.7% from the previous year. Although, the rise comes to 15% yearly from the Revised Estimates of Rs 77,351 crores.

Now, let’s have a look at the focus areas where the budgeted amount is to expected to spent on.

Budget 2023: Highlights for the Healthcare Sector

The major areas of focus for the Healthcare Sector in Budget 2023 will be:

• Ayushman Bharat - Rs 7,200 crores (up 11.5% from previous year)
   
• National Tele Mental Health Programme - Rs 133.73 crores (up 10.5% from prior year)
   
• National Health Mission - Rs 36,785 crores (down 10.1% from the previous year)
   
• Ayush Ministry - Rs 2,845.75 crores (up 28% from last year)

Some of the key takeaways for the Healthcare Sector from Budget 2023 are:

• Special mission announced to eliminate Sickle Cell Anemia by 2047 and universal screening of 7 crore people under the age of 40.
• Select ICMR labs will be made available for research by public and private medical facilities.
• The implementation of specific multidisciplinary courses for medical devices. This will receive Government support in institutions to develop skilled manpower who will manufacture high-end tech to treat deadly diseases.
• Introduction of National Data Governance policy to enable anonymous data access.

Budget 2023: Healthcare Stocks Decrease

The modest rise in allocation for the healthcare sector overall has caused disappointment. This is reflected in the share prices of the stocks in the healthcare sector. Notably, the Nifty Pharma index dropped marginally post the budget. Let’s have a look at how the top healthcare stocks performed in the past week.

(as of 2nd Feb, 2023)
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.