Govt approves creation of PM Swasthya Suraksha Nidhi as single non-lapsable reserve fund for health

Why In News?

Cabinet approves Pradhan Mantri Swasthya Suraksha Nidhi as single non-lapsable reserve fund

Salient features of the PMSSN  

A single non-lapsable reserve fund for share of health from the proceeds of health and education cess levied under Finance Act, 2007. 

The accruals into the PMSSN will be utilised for the flagship schemes of the Health Ministry including Ayushmann Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY); Ayushman Bharat–Health and Wellness Centres (AB-HWCs); National Health Mission and Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and also disaster preparedness, and responses during health emergencies.

Background:

Benefits:

The major benefit will be: enhanced access to universal & affordable health care through availability of earmarked resources, while ensuring that the amount does not lapse at the end of financial year.

Health is vital for improved developmental outcomes. From an economic standpoint, better health improves productivity, and reduces losses due to premature death, prolonged disability and early retirement. Health and Nutrition also directly impact scholastic achievements and have a bearing on productivity and income.  Health Outcomes depend substantially on public spending on health.  One extra year of population life expectancy raises GDP per capita by 4%, Investment in health creates millions of jobs, largely for women, through a much needed expansion of the health workforce

In the budget speech 2018, the Finance Minister while announcing Ayushman Bharat Scheme, also announced replacement of existing 3% Education Cess by 4% Health and Education Cess.