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Health Cess Revenue Fails to Offset Declining Government Healthcare Investment

Agency Source: Times of India Bureau Release: February 3, 2026 | 22:31 IST
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Analysis reveals that the implementation of a health cess has not achieved its intended purpose of augmenting public healthcare funding. Contrary to expectations that this levy would supplement existing budgetary allocations, it appears to be obscuring a significant reduction in the government's proportional investment in the health sector. Data indicates a concerning downward trajectory: the share of health expenditure relative to GDP has declined from 0.32% in the pre-pandemic fiscal year of 2019 to 0.27% in the current period, even with the cess component included. This suggests the additional revenue stream is not translating into enhanced fiscal commitment but rather compensating for a broader contraction in budgetary priority. The trend raises critical questions about fiscal transparency and the strategic allocation of earmarked funds, potentially undermining long-term public health infrastructure and preparedness.

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