Pharma, urban healthcare neglected: Kiran Mazumdar-Shaw

The FM has deftly attempted to strike a balance between revenue and expenditure in order to reign in the fiscal deficit to 5.2 per cent of gross domestic product. The directional intent is good and the investment signals are positive. However, implementation and fiscal prudence still remain a concern.

Prudence has been exhibited when it comes to announcing a tax surcharge on high income salaries above Rs 1 crore, corporate profits exceeding Rs 10 crores and dividends. However, a serious worry is the spiralling fertiliser and food subsidy, pegged at Rs 65,000 crores and Rs 85,000 crores, respectively. I had hoped for converting agricultural subsidies into incentives for co-operative farming that will create economies of scale to enable technology adoption to boost productivity. The pharma and urban healthcare sectors have been neglected. Drugs under price control need to be exempted from taxes and excises to compensate for forced discounts and increased manufacturing costs. Considering that 85 per cent of healthcare infrastructure is in the private sector, the FM would have done well to extend the allocation provided to AIIMS like hospitals to the private hospitals.

Overall, a positive Budget which may not deliver the intended more than six per cent growth.

Kiran Mazumdar-Shaw
Chairman and Managing Director, Biocon