Cabinet okays creation of Pradhan Mantri Swasthya Suraksha Nidhi as non-lapsable reserve fund for Health
New Delhi, March 11, 2021
The Union Cabinet on Wednesday approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for a share of Health from the proceeds of Health and Education Cess levied under Section 136-b of the Finance Act, 2007.
The Nidhi will be a non-lapsable reserve fund for Health in the Public Account. Proceeds of the share of health in the Health and Education Cess will be credited into PMSSN.
Accruals into the PMSSN will be utilized for the flagship schemes of the Ministry of Health & Family Welfare namely, Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and Ayushman Bharat - Health and Wellness Centres (AB-HWCs).
The National Health Mission Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and Emergency & disaster preparedness and responses during health emergencies will utilise the funds, an official press release said.
It also includes any future programme/scheme that targets to achieve progress towards SDGs and the targets set out in the National Health Policy (NHP) 2017.
The administration and maintenance of the PMSSN are entrusted to the Ministry of Health & Family Welfare. In any financial year, the expenditure on such schemes of the MoHFW would be initially incurred from the PMSSN and thereafter, from the Gross Budgetary Support (GBS).
"The major benefits will be enhanced access to universal & affordable health care through the availability of earmarked resources while ensuring that the amount does not lapse at the end of the financial year.
"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," the release said.
In the budget speech 2018, the Finance Minister, while announcing Ayushman Bharat Scheme, had also announced the replacement of the existing 3% Education Cess by 4% Health and Education Cess.