DAILY NEWS ANALYSIS

10 March, 2021
7 Min Read

Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN)

Importance of Health

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 of 2018, the Finance Minister while announcing Ayushman Bharat Scheme, also announced the replacement of the existing 3% Education Cess by 4% Health and Education Cess.

Cabinet approved the creation of 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 Finance Act, 2007.

Salient features of the PMSSN

A non-lapsable reserve fund for Health in the Public Account;
Proceeds of 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)
Ayushman Bharat - Health and Wellness Centres (AB-HWCs)
National Health Mission
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)
Emergency & disaster preparedness and responses during health emergencies
Any future programme/scheme that targets to achieve progress towards SDGs and the targets set out in the National Health Policy (NHP) 2017.
Administration and maintenance of the PMSSN are entrusted to the Ministry of Health & Family Welfare; 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).
The major benefit 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.

Source: PIB

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