As future waves of COVID-19 is expected to affect un-vaccinanted groups especially children, the Centre has allocated an additional ₹23,220 crore for public health sector, with primary focus on pediatric care during the year. This would be the most critical component in handling the COVID-19 under short term Emergency Preparedness Projects for the year. Alongside the emergency projects, Union Finance Minister Nirmala Sitharaman on Monday announced ₹50,000 crore relief for the health sector under the ₹1.1 lakh crore loan guarantee scheme for pandemic-hit sectors.

“There will be a guarantee cover for expansion and new projects related to health and medical infrastructure in cities other than eight metropolitan cities. The guarantee coverage will have 50% for expansion and 75% for new projects," Sitharaman told reports while announcing Rs1.1 Lakh Crore  Loan Guarantee Scheme for COVID Affected Sectors. The Centre has accorded priority to health sector as Rs 50,000 crore has been earmarked for it. 

“For aspirational districts, there will be guarantee cover of 75% for both new projects and expansion. The maximum loan will be ₹100 crore with guarantee duration of up to 3 years. The interest rate will be capped at 7.95%. The guarantee will be by National Credit Guarantee Trustee Company Limited," she said.

“We have allocated more for Public Health. ₹15,000 crores have been allocated for Emergency Health Systems Project (2020-21) that will lead to 25 folds increase in COVID dedicated hospitals," added the finance minister.

The finance minister announced the setting up of 7,929 covid health centres, 9,954 covid care centres, 7.5 times increase in oxygen supported beds, 42 folds increase in isolation beds, 45 folds increase in ICU beds. “New scheme focused on short term emergency preparedness with special emphasis on children and paediatric care/paediatric beds. ₹23,220 crores have been earmarked for one year," said the finance minister.

The economic package also augured funding for short-term human resources (HR) augmentation through medical students including interns, residents, final year and nursing students. The central government said that there will be an increase in the availability of ICU beds, oxygen supply at the central, district and subdistrict level.

The government said it will ensure adequate availability of equipment, medicines, access to teleconsultation; ambulance services. Further, there will be enhanced testing capacity and supportive diagnostics, strengthen capacity for surveillance and genome sequencing, said the finance minister.

India Inc. has welcomed the move. Commenting on the economic package and relief measure Sanjiv Mehta, Senior Vice President, FICCI said, “While some of the existing relief measures have been extended, the focus of the new measures is very well placed. The emphasis laid on the covid affected sectors in the latest relief package is laudable and was the need of the hour.”

 “The Rs 1.1 lakh crore credit guarantee scheme for COVID affected sectors with stress on the health sector is a great step forward. The focus on scaling up health infrastructure in areas other than the metropolitan cities should ensure timely availability of medical aid in the smaller cities. Moreover, the additional allocation of about Rs 23,220 crore for enhancing pediatric care centered facilities is equally important. These measures are timely, and their seamless implementation should help us prepare better to face the subsequent waves of the pandemic,” added Mehta.

 Public health experts have welcomed the allocations arguing for more support at the same time. “The pinpoint focus on augmenting manpower and infrastructural resources for paediatric care is a welcome step and a new beginning. Increased outlay of 50,000 crores on scaling up medical infrastructure in the metropolitan cities, as well as other areas, would be useful in the short term, but has to be increased manifold to make up for neglect of the healthcare sector over the past several decades," said Harsh Mahajan, President, NATHEALTH, healthcare federation of India. 

DrRajendraPatankar CEO, Jupiter Hospital, Pune said, “Providing liquidity support to the healthcare sector along with other measures would help in strengthening our health infrastructure and systems. Allocating Health Sector Rs. 50,000 crore for scaling up medical infrastructure targeting underserved areas was a much awaited measure. The FM has maintained a balance by providing guarantee cover for expansion and new projects related to health/medical infrastructure in cities other than eight metropolitan cities.”

Reacting to the Centre’s announcement, DrArchanDhawan Bajaj, Director, Nurture Clinicsaid“The government has taken two much-awaited measures to support COVID Affected Sectors. It is promising to note that the healthcare sector is on high priority for the government. The Union Finance Minister, while announcing the financial relief measures, considered all important components such as credit facility, improvement of healthcare infrastructure, Emergency Health Systems Projects for 2020-21 with a focus on children and paediatric care/paediatric beds.

“Additionally, funding for short-term HR augmentation through medical students-interns, residents, final year and nursing students would help in strengthening the sector not only in managing the COVID crisis but for overall improvement of the health systems. However, this should not only be part of a short term emergency health system project but a sustainable measure,” she added.