Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN)

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

About

• The accruals into the PMSSN will be utilised for the flagship schemes of the Health Ministry including:
  • Ayushmann 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) and also disaster preparedness, and responses during health emergencies.
• The administration and maintenance of the PMSSN are entrusted to the health ministry 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).

Benefits

• The major benefit will be: enhanced access to universal & affordable health care through availability of earmarked resources, while ensuring that the amount does not lapse at the end of financial year.

Significance

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

Source:PIB