Feb 1, 2022
By: bhakti.makwana@timesinternet.in
Credit: BCCL
There are high expectations from budget 2022 with regards to the capital allocation for the healthcare sector, which is struggling with pandemic-related challenges for over two years now.
Credit: BCCL
Last year, Finance Minister Nirmala Sitharaman had hiked allocation to healthcare significantly to ₹2.34 lakh crore.
Credit: BCCL
Credit: BCCL
Now, the industry expects Budget 2022 to hike healthcare expenses to 3 percent of gross domestic product (GDP) from current 1.2 percent.
Credit: BCCL
“Likely given the challenges exposed by the pandemic; government to look at increasing healthcare expenditure above 2.5 percent of GDP,'' said a report by Edelweiss Research.
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While healthcare has become more expensive amid COVID-19, the budget is expected to provide tax deduction on buying medical insurances.
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“A special COVID expense related deduction may be allowed under section 80D or 80DDB to provide tax relief for COVID-19 patients and their families,” said Clear (formerly ClearTax), a platform for tax and GST filing.
Credit: BCCL
Also, there may be extra provisioning for vaccine-related costs in the budget.
Credit: BCCL
“As health remains the most important factor in the pandemic phase, we expect a reduction in the GST rate for health insurance from 18 percent to 5 percent, which will boost the accessibility to health insurance products,” said a report by KR Choksey.
Credit: BCCL