New Delhi, Aug 5: Health Minister J P Nadda on Monday urged state governments to spend more on improving healthcare infrastructure and dismissed opposition allegations on reduction of allocations under the PM-Ayushman Bharat Healthcare Infrastructure Mission (PM-ABHIM).

Replying to the debate on the demand for grants for the health and family welfare ministry in the Lok Sabha, Nadda listed the increase in number of medical colleges, steps taken for the reduction of out-of-pocket expenses on healthcare and initiatives for early screening of diseases such as cancer and sickle cell anaemia as achievements of the government.

"We don't believe in just making announcements. We believe in effective planning, ensuring last mile delivery, identifying bottlenecks in last mile delivery and taking steps to remove them," the minister said.

Nadda dared Trinamool Congress members, who were protesting, to tell the House why the West Bengal government had not shared the dengue registry with the Centre.

On opposition claims on reduction of funds for the health infrastructure mission, the health minister said states were able to spend just Rs 1,806 crore out of the budgetary allocation of Rs 4,200 crore in last year's budget.

"We are giving money, but it is not spent. You spend the money, we will allocate more funds if the existing funds are spent," Nadda said, adding that Rs 3,200 crore have been earmarked for PM-ABHIM this year.

Nadda said the Modi government has placed healthcare as a priority sector in the allocation made in the Union Budget.

"The health policy released in 2017 had set a target of 2.5 per cent of GDP for the healthcare sector by 2025. In this year’s budget the allocation for the health sector is 1.9 per cent of the GDP and we are on track of achieving the target," the health minister said.

Nadda said that in 2013-14, the budget for the health sector was Rs 33,278 crore, and today it stood at Rs 90,958 crore, which is an increase of 164 per cent.

He also mentioned that local governments have allocated an additional Rs 71,051 crore, as suggested by the 15th Finance Commission report.

"The National Health Mission (NHM) ensures that state governments strengthen their health infrastructure and logistics, with Rs 55 crore allocated from the total health budget," Nadda added.

He said that under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), Rs 13,900 crore has been spent to strengthen tertiary healthcare.

On concerns voiced by the opposition on out-of-pocket expenditure, Nadda said the Modi government has succeeded in reducing it from 62 per cent to 41 per cent by strengthening Ayushman Bharat initiatives, making available free drugs and diagnostic facilities, and free screening.

The minister said the government has now approved 22 AIIMS spread across the country, of which 18 were operational and four were under construction.

He said the opposition should appreciate the achievements of Prime Minister Narendra Modi who has ensured upgradation of 157 medical colleges.

Nadda said the number of medical colleges too have increased from 387 earlier to 731 at present. According to the minister the undergraduate seats have increased from 51,348 to 1,12,112, an increase by 118 per cent.

The minister said the number of post-graduate seats too have increased from 31,185 earlier to 72,627 at present, an increase of 113 per cent.

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New Delhi, Sep 9: GST Council headed by Union Finance Minister Nirmala Sitharaman on Monday decided to set up a Group of Ministers (GoM) on reducing tax rate on life and health insurance and cut GST on cancer drugs and namkeens.

Briefing reporters on the outcome of the 54th GST Council meeting, Sitharaman said it has decided to have a Group of Ministers (GoM) to look into the GST rate on life and health insurance.

The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation.

Sitharaman said that new members would be joining the GoM to look into GST on health insurance.

The GoM will be submitting its report by October end, she said.

The issue of taxation of insurance premiums had figured in Parliament discussions with Opposition members demanding that health and life insurance premiums be exempt from the GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.

Sitharaman in her reply to a discussion on the Finance Bill had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal at the GST Council.

The GST Council in its meeting on Monday also decided to cut tax rates on cancer drugs to 5 per cent from 12 per cent and namkeens from 18 per cent to 12 per cent.

Sitharaman further said that a GoM will also be constituted to deal with the issue concerning compensation cess which will cease after March 2026.

The Council also deliberated on the GoM's status report on rate rationalisation and online gaming.

The minister further said that a committee of secretaries headed by Additional Secretary (Revenue) will be formed on the IGST which is currently facing a negative balance. It will look into ways to retrieve the money from states.