Advocates Efficient Utilization and Increased Spending
Hyderabad: Speaking at the ICFAI Foundation for Higher Education (IFHE) in Hyderabad, former Reserve Bank of India Governor C Rangarajan highlighted the critical need for India to increase its healthcare spending, which currently stands at less than 2% of GDP.
Rangarajan emphasized the goal of raising healthcare expenditure to at least 2.8% of GDP, as consistently discussed in policy circles. However, he stressed that ensuring efficient utilization of funds must precede any increase in spending.
“Governments should focus on establishing hospitals that offer free services and ensure these funds are utilised efficiently,” Rangarajan stated.
Education vs. Health: A Resource Allocation Concern
The former chairman of the Prime Minister’s Economic Advisory Council also pointed out disparities in India’s social expenditure system, where education receives more resources than healthcare, a strategy he questioned as less than ideal for holistic progress.
Alternative Healthcare Models
Drawing comparisons with international systems, Rangarajan noted the limited relevance of insurance-linked medical services in the Indian context. Instead, he proposed cross-subsidisation models, which can cater to the needs of both affluent and economically weaker sections of society.
“Medical services in many Indian hospitals are comparable to those in developed countries,” he added, advocating for India to expand access to high-quality healthcare.
Memorial Lecture Highlights
The event also featured Dr. Gullapalli N Rao, founder and chairman of the LV Prasad Eye Institute, who delivered the 13th NJ Yasaswy Memorial Lecture, emphasizing the intersection of innovation and accessibility in healthcare.
Rangarajan’s address underscored the need for a strategic overhaul in healthcare funding and resource management, crucial for India’s socio-economic progress.
