Consider the following statements with reference to the healthcare sector in Budget 2020. 1. Out of the total amount allocated for Healthcare, Rs. 6,400 crore was assigned to 'PM Jan Arogya Yojana'. 2. In this budget, Rs. 79,000 crore was allocated for Healthcare. Which of the statements given above is/are correct?

Consider the following statements with reference to the healthcare sector in Budget 2020. 1. Out of the total amount allocated for Healthcare, Rs. 6,400 crore was assigned to 'PM Jan Arogya Yojana'. 2. In this budget, Rs. 79,000 crore was allocated for Healthcare. Which of the statements given above is/are correct? Correct Answer Only 1

The correct answer is Only 1.

Key Points

  • The Budget for FY 2021-22 has come up with a holistic approach to health, incorporating ‘preventive’, ‘curative’, and ‘well-being’ aspects with an increase of 137% as compared to the previous fiscal.
  • India’s health infrastructure came under considerable strain in 2020, with 11 million Covid cases and perhaps over a million requiring hospitalisation.
  • PM Jan Arogya Yojana (PMJAY)/ Ayushman Bharat:
    • Viability Gap Funding window proposed for setting up hospitals in the PPP model.
    • Aspirational Districts with no Ayushman empanelled hospitals to be covered in the first phase.
    • The government has allocated Rs 6,400 crore for the Pradhan Mantri Jan Arogya Yojana (PMJAY) for 2019-20. ​Hence statement 1 is correct.
  • The Budget has committed to an outlay of 2,23,846 crore in health and well-being for 2021-22, a 137% increase over the previous year’s Budget Estimate of 94,452 crores. Hence statement 2 is incorrect.
  • This includes a 60,030 crore outlay on drinking water and sanitation, a 2,700 crore outlay on nutrition, nearly 49,000 crores as Finance Commission grants and 35,000 crores toward vaccination.

Additional Information

  • The Budget is presented on 1st February so that it can materialise before the commencement of the new financial year which starts on 1st April. 
  • In 2017, a 92-year-old tradition was broken when the railway budget was merged with the Union Budget and presented together.
  • The aim of the Union budget is:
    • To achieve seamless delivery of services through Digital governance.
    • To improve the physical quality of life through the National Infrastructure Pipeline.
    • Risk mitigation through Disaster Resilience.
    • Social security through Pension and Insurance penetration.

Related Questions

Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. Fraud-hit Punjab National (PNB) today said it has no plans to close operations at its Brady House branch, the fountainhead of the Rs. 14,000 crore Nirav Modi scam. II. Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of about Rs. 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).  Conclusions: I. PNB's Brady House branch in Mumbai had fraudulently issued LoUs for the group of companies belonging to Nirav Modi since March 2011. PNB has no plans to close operations in the Brady House branch in Mumbai. II. Reallocation of some of the accounts is part of the regular restructuring process at PNB to strengthen internal systems and processes and centralize certain critical functions  III. With regards to provision made for the loss incurred on account of the Nirav Modi fraud, the bank provided Rs. 7,178 crore, 50 per cent of the total amount of Rs. 14,356 crore, in the fourth quarter of 2017-18. The remaining amount will be covered in the three quarters of the current fiscal year.
Two statements are followed by three Conclusions I, II and III. You have to consider the statements to be true, even if they seem to be at variance from commonly known facts. You are to decide which of the given conclusions can definitely be drawn from the given statements and indicate your answer accordingly. Statements: I. One of the biggest acquisitions in the Indian patient-care industry, the Rs. 4,500-crore Fortis-IHH deal could intensify competitive intensity in the space, with declines Friday in the shares of Apollo Hospitals, Healthcare Global, Max India and Narayana Hrudayalaya pointing to potential challenges for the incumbents.  II. After the completion of the deal, the IHH-Fortis group of hospitals will be among the biggest in the country, competing directly with some of the large listed hospital chains. The BSE Healthcare index also fell Friday, with hospital stocks at the vanguard of the downward journey.  Conclusions: I. Hospitals will be challenged as they will have to face someone like IHH, which has deep pockets and will be going into markets where they are present. II. Shares of Apollo, currently the largest hospital chain in India, fell more than 2%, closing at Rs. 975, followed by Max India that lost by 2.40%. III. Both are direct competitors of Fortis, Narayana and Healthcare Global also fell after the buyout announcement.