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Budget prioritises health sector, Rs 90.69b allocated



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By Ajita Rijal

Kathmandu, May 29: The government has allocated Rs 90.69 billion budget for the health sector for the upcoming fiscal year (FY) 2020/21.
Unveiling the government’s annual budget for the FY 2020/2021 Finance Minister (FM) Dr Yubraj Khatiwada announced that Rs 90.69 billion was allocated for the Ministry of Health and Population (MoHP).
“The objective of the new budget is to protect the lives of citizens from all types of diseases and disasters and make their lives better and safer,” Khatiwada said while mentioning health as first in the list of four main objectives in the new budget. Also two of the six programme-wise and sector-wise priorities included dealing with COVID-19.
The new health budget is an increase by around Rs 22.9 billion, compared to last fiscal year’s allocation for the health sector.
Given the ongoing COVID-19 pandemic that has claimed at least five lives and infected over 1,000 in the country as of Thursday, increase in health budget was largely expected in the new FY. The budget for the health sector in the last fiscal year was Rs 68.78 billion.
The major focus of the new health budget includes mainly fighting COVID-19, upgrading health infrastructures and hospital facilities across the country, and expanding national health insurance, among others.
“The budget for upcoming FY will focus on overcoming the challenges created by the ongoing COVID-19 pandemic,” said Dr Khatiwada.  
Rs 6 billion to fight COVID-19
Unveiling the budget for the fiscal year 2020/21, FM Dr Khatiwada said high priority would be given to prevention and control of COVID-19 and infectious diseases.
“A total budget of Rs 6 billion has been allocated for health equipment, medicines and health services required for prevention and treatment of COVID-19,” FM Dr Khatiwada said.
Khatiwada said that the government’s target is to focus on the expansion of tests facilities. Focus will also be on expanding tests in high-risk areas to prevent further spread of the coronavirus,” he said.
The government has allocated budget for health infrastructure development including hospitals.
“Budget has been allocated to build a well-equipped 300-bed, separate infectious disease hospital in the Kathmandu Valley next year,” Khatiwada said.
“Similarly, additional 250 ICU beds will be added to the existing government hospitals in Kathmandu and in each state capital,” he added.
Moreover, new 50-bed infectious disease hospitals will be operated in all state capitals. Also well-equipped laboratories will be established in all states.

With the policy to enhance access to quality healthcare for all citizens, the government has aimed to build 5- to 15-bed basic hospitals at all local levels and accordingly budget is allocated to build 272 hospitals in the upcoming FY. Budget has also been put to upgrade all existing district hospitals and zonal hospitals.
The government has allocated budget to upgrade Pokhara and Karnali Academy of Health Sciences (KAHS) as well as five major hospitals in the country -- Koshi, Narayani, Bharatpur, Bheri and Dadeldhura Hospitals -- into specialised hospitals in the new FY.
Rs 7.5 billion for health insurance
Likewise, with the aim to expand reach of the government’s ongoing health insurance programme for all citizens within next three years, it has allocated budget to bring another 40 per cent on board.
“Health insurance will be provided to all citizens in three years and 40 per cent of the population will be brought under insurance scheme by next year,” said Khatiwada. “Rs 7.5 billion has been allocated for this programme.”
Free blood pressure, albumin and diabetes check will be provided to citizens aged above 40 years at the ward level health centers. 
Insurance for health workers
Khatiwada announced free health insurance of up to Rs 500,000 for the health workers involved in the treatment of COVID-19 and other infectious diseases.
He said arrangements had been made to provide incentives and allowances to the doctors involved in the treatment of COVID-19 and those working in the laboratories.
Similarly, the government has also doubled the allowance for female community health workers.
The government has also allocated budget to kick-start preparatory works to establish a Center for Disease Control (CDC) Nepal for prevention and control of disease. A Food and Drug Administration (FDA) will also be established to regulate medicines and quality of medical equipment.
One doctor, one health institution
The government plans to implement the ‘one doctor, one health institution’ policy in the new FY. FM Khatiwada said that the government had allocated necessary budget for this initiative.
Likewise, budget has been allocated to operate an integrated ambulance service so that the citizens can easily get ambulances in a hassle-free and simple way by dialing a three-digit phone from anywhere within Nepal. Also, the government plans to build trauma centers at hospitals on the major highways that see more accidents.