New Delhi: Healthcare industry body NATHEALTH on Tuesday urged the government to raise public health expenditure to above 2.5 per cent of GDP and rationalise GST for healthcare with a uniform 5 per cent rate slab.

In its pre-budget recommendations, NATHEALTH also called for the implementation of “transformative measures that focus on strengthening healthcare infrastructure and making strategic investments to address both demand and supply-side challenges”. Finance Minister Nirmala Sitharaman is expected to unveil the budget proposals for 2024-25 financial year on July 23 in the Lok Sabha. NATHEALTH President, and Max Healthcare Institute Chairman & Managing Director Abhay Soi said India has made significant strides toward becoming a global healthcare powerhouse and this has substantially contributed to GDP and job creation.

As the nation progresses toward achieving a $5 trillion economy, providing quality healthcare for the entire population is a prerequisite. Addressing healthcare challenges will require an estimated 2 billion square feet of advanced healthcare infrastructure, he added. “To meet these needs, increasing GDP spending on healthcare to 2.5 per cent is crucial for enhancing social insurance, expanding facilities in tier-2 and 3 cities, and advancing digital health services,”Soi said.

Among its recommendations, NATHEALTH advocated “rationalising GST with a uniform 5 per cent rate slab for healthcare and full input tax credit eligibility; addressing the issue of unused MAT credits, and reviewing health cess policies for MedTech to ensure affordability”.