How can the Ayushman health care scheme introduced by Arun Jaitely be feasible considering its cost to the exchequer

How can the Ayushman health care scheme introduced by Arun Jaitely be feasible considering its cost to the exchequer ?

Shivangi , 03 Feb 2018

2 Answers

To be honest, I'm surprised BJP introduced a free healthcare system as it has always been more inclined to being a proponent of the free market system rather than following a relatively socialist idea such as free healthcare. Congress has always prided itself on being a mildly socialist party and it never came near introducing free healthcare. Nevertheless, I am happy this scheme has been introduced. Regarding its feasibility, I have no problem taxing the top 1% of India who play the stock market and earn crores while the poor suffer. The disparity between the mega rich and the poor has become a joke in India. This scheme sets up a good precedent for the country. Rather than aping the US in everything, we should follow the example of the Scandinavian countries who have seen massive growth under high taxes for the mega rich.

The Ayushman Healthcare scheme, or Modicare as it is being popularly called has been lauded as a masterstroke by many political and economics experts. The nitty-gritties of the scheme are yet to be put forth, but some details have seeped through the Finance Ministry. The scheme will have no cap on the number of members in the family. Furthermore, the state government will share 40% of the financial burden for Modicare. On the question of its feasibility, one has to understand the mechanics behind the decision. By cutting allowance for salaried employees to bring the effective standard deduction to just Rs. 5,800/- the government will gain a large chunk of extra money. Furthermore, the long term capital gain taxation will further bring in increased revenue. This money will go into providing free healthcare to almost 40% of the country's population every year.