Cabinet clears non-lapsable fund for health care

Amount accruing from health cess to be managed by Health Ministry.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN), a single non-lapsable reserve fund for health from the proceeds of Health and Education Cess levied under Section 136-b of Finance Act, 2007.

In its release issued on Wednesday, the government said the major benefits of PMSSN will be the enhanced access to universal and affordable health care through availability of earmarked resources, while ensuring that the amount does not lapse at the end of the financial year.

In the 2018 Budget, the Central Government while announcing Ayushman Bharat Scheme, also announced replacement of existing 3% Education Cess by 4% Health and Education Cess, the released added.

“Proceeds of share of health in the Health and Education Cess will be credited into PMSSN and accruals into the PMSSN will be utilized for the flagship schemes of the Health Ministry — 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 and disaster preparedness and responses during health emergencies and any future programme/scheme that targets to achieve progress towards SDGs and the targets set out in the National Health Policy (NHP) 2017,” noted the release.

It added that administration and maintenance of the PMSSN is entrusted to the Health Ministry and in any financial year, the expenditure on such schemes of the Ministry would be initially incurred from the PMSSN and thereafter, from Gross Budgetary Support (GBS).

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