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Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN)

Posted on March 11, 2021 by admin1  1117

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The Union Cabinet, chaired by the Prime Minister approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for share of Health from the proceeds of Health and Education Cess levied under Section 136-b of Finance Act, 2007.

About

  • 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
    • Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and also disaster preparedness, and responses during health emergencies.
  • The administration and maintenance of the PMSSN are entrusted to the health ministry and in any financial year.
    • The expenditure on such schemes of the MoHFW would be initially incurred from the PMSSN and thereafter, from gross budgetary support (GBS).

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.

Significance

  • 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.

Cess

  • Cess is a form of tax charged/levied over and above the base tax liability of a taxpayer.
  •  A cess is usually imposed additionally when the state or the central government looks to raise funds for specific purposes.

Types of Cess in India

  • Education Cess: Education cess was introduced to finance and provide standard quality education to poor people.
  • Health and education cess: Proposed in Budget 2018 by Finance Minister Arun Jaitley to meet the education and health needs of rural and rural and Below Poverty Line (BPL) families.
  • Swachh Bharat Cess: Introduced in 2015, a 0.5% Swachh Bharat cess was imposed to fund a national campaign for clearing the roads, streets and the infrastructure of India.
  • Krishi Kalyan Cess: This cess was aimed at developing the agricultural economy, and was collected at the rate of 0.5%.
  • Infrastructure Cess: Announced in Union Budget 2016, this cess was charged on the production of vehicles.

Source:PIB

 
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