Kolkata Healthcare Sector Awaits Budget Boost: GST Relief, AI Expansion & Rural Incentives
Kolkata Health Sector Seeks GST Cut, AI Tech & Rural Support in Budget

Kolkata Healthcare Sector Presents Budget Wishlist: GST Rationalization, Tech Expansion & Rural Support

As the Union Budget approaches, the healthcare sector in Kolkata and West Bengal has outlined a comprehensive set of expectations aimed at transforming patient care and accessibility. Key stakeholders from leading hospitals and institutions are calling for strategic interventions that address both immediate financial burdens and long-term systemic improvements.

High GST: A Major Hurdle in Affordable Treatment

Private hospitals in Kolkata have highlighted the significant impact of Goods and Services Tax (GST) on treatment costs. The current tax structure makes various components—from bed charges and medical consumables to medicines and advanced equipment—more expensive for patients. Prashant Sharma, Chairperson of the Indian Chamber of Commerce health committee and Managing Director of Charncok Hospital, emphasized, "We hope the government reconsiders the high indirect taxation in healthcare. Reducing this burden can substantially lower treatment expenses and benefit patients across the board."

Adding to this concern, Supriyo Chakrabarty, Group Advisor at BP Poddar Hospital, pointed out a specific issue regarding GST on hospital bed charges exceeding Rs 5,000. "Many patients choose these beds for enhanced comfort. However, since hospitals cannot claim GST input credit on these charges, the additional cost is directly passed on to the patient's bill, increasing their financial strain," he explained.

Strengthening Healthcare Infrastructure: From Tertiary to Primary Levels

There is a strong consensus on the need for increased funding across all tiers of healthcare. Arvind Sinha, Executive Director of AIIMS, Kalyani, stressed, "At the tertiary level, institutions like AIIMS require more resources for infrastructure development, advanced equipment procurement, manpower enhancement, and daily operational needs. Simultaneously, it is crucial to bolster primary and secondary healthcare systems to ensure patients receive timely care closer to their homes."

He also advocated for the expansion of schemes like Ayushman Bharat to widen coverage and improve health outcomes. This dual approach aims to create a more resilient and accessible healthcare network throughout the region.

Leveraging Technology and Preventive Care

The integration of advanced technologies is seen as a vital component for future-ready healthcare. Sudarshan Ballal, Chairman of Manipal Hospitals, noted, "Artificial Intelligence and other digital tools are essential to complement and enhance healthcare services. We need increased investments in primary and preventive care, encompassing areas such as antenatal care, childhood vaccinations, and nutritional support for children."

He further emphasized the importance of public awareness campaigns to prevent communicable and non-communicable diseases, vector-borne illnesses, gastrointestinal infections, and lifestyle-related health issues. Proactive measures in these areas can reduce the overall disease burden and improve community health.

Boosting Public Health Spending and Fiscal Measures

Rupak Barua, CEO of Woodlands Hospital, called for a credible roadmap to increase public health spending. "The current expenditure stands at approximately 1.8% of GDP. The Budget should outline a clear path to achieve the National Health Policy goal of 2.5%. This increased funding should translate into tangible capacity enhancements," he stated.

He proposed several actionable steps:

  • Public-Private Partnership (PPP)-led expansion of district-level diagnostics, oncology, and critical care facilities.
  • Integration of telemedicine with the Ayushman Bharat Digital Mission (ABDM) to minimize redundant tests and streamline patient data.
  • Further rationalization of GST and broadening of customs relief for cancer therapies, especially given that out-of-pocket expenses still constitute around 39% of total health expenditure.

These fiscal levers are considered critical for making healthcare more affordable and reducing the financial burden on families.

Incentivizing Rural Healthcare Workers

A recurring theme in the sector's expectations is the need for better incentives and support for rural health care workers. Strengthening this workforce is viewed as essential for improving healthcare delivery in remote and underserved areas, ensuring that quality medical services reach every corner of the state.

In summary, Kolkata's healthcare sector is looking to the Union Budget for a multi-faceted approach that combines tax relief, infrastructure investment, technological advancement, and workforce empowerment. The collective voice of hospital administrators and health experts underscores a shared goal: to build a more robust, equitable, and efficient healthcare system that prioritizes patient welfare and accessibility for all residents of West Bengal.