KATHMANDU, June 1: The budget allocated to the health sector for the upcoming fiscal year remains low, much like in previous years.
Finance Minister Swarnim Wagle, while presenting the budget before the Federal Parliament on Friday, allocated Rs 101.95 billion to the health sector out of a total budget of Rs 2.124 trillion. This means health accounts for 4.85 percent of the total budget. Last year, the sector received 4.87 percent of the total budget, amounting to Rs 95.81 billion.
Although the health budget for the upcoming fiscal year has increased by 6.34 percent compared to the previous year, it still falls short of recommended standards. According to the World Health Organization, at least 10 percent of the total national budget should be allocated to health.
Under the new budget, Rs 15 billion has been allocated for health insurance and Rs 13 billion for maternal and child health programmes. The government has also pledged to provide essential equipment to Bharatpur Cancer Hospital, establish burn and kidney treatment units in all seven federal hospitals, expand specialized burn treatment services at Bir Hospital and Kirtipur Hospital, and provide necessary support to Dhulikhel Hospital, Tilganga Institute of Ophthalmology and Kanti Children’s Hospital for their contributions to social services. In addition, Rs 320 million has been allocated for the purchase of a cyclotron and PET scan machine at Bharatpur Cancer Hospital.
Trace and test
The government has also announced plans to upgrade Gajendra Narayan Singh Hospital, Narayani Hospital and Ramraja Prasad Singh Hospital, promote Ayurveda and alternative medicine systems, and double night-duty allowances for nursing staff. Other programmes include producing 23 types of medicines through Nepal Pharmaceuticals Limited, providing free cancer treatment for children, establishing affordable pharmacies in hospitals across the country, completing the construction of 336 under-construction basic hospitals within three years, and reassessing unstarted hospital projects before moving ahead with construction where necessary.
Despite the increase compared to last year, the budget does not appear to fully address programmes that directly target public health. The allocation for the health insurance programme, which has struggled with implementation issues for years, also appears inadequate. By the end of the current fiscal year, service provider institutions are expected to be owed around Rs 16–18 billion in pending payments. Based on this, experts estimate that health insurance alone would require a budget of approximately Rs 25–30 billion next year. Against that backdrop, the allocated amount appears insufficient. The budget also proposes integrating the programme into broader social security and insurance schemes.
According to experts, while the upcoming budget contains some positive aspects, several longstanding concerns remain unresolved. Dr. Senendra Upreti, public health expert and former executive director of the National Health Insurance Board, said that a larger budget than last year is positive in itself.
“The health budget is encouraging despite the economic challenges,” he said, adding that the programmes outlined in the budget also show signs of improvement.
Another public health expert and former additional secretary at the Ministry of Health and Population, Mahendra Shrestha, said the plan to complete under-construction basic hospitals is a positive step. However, he noted that uncertainty remains regarding the relationship between upgrading basic hospitals and implementing the health insurance programme, both of which are crucial for ensuring citizens’ right to healthcare.
According to him, services at basic hospitals should be fully free of charge, whereas the current model relies on health insurance coverage. He also pointed out the absence of a clear plan to ensure the quality of hospital services. In addition, he said the budget does not adequately address the growing burden of infectious diseases or programmes aimed at improving public health awareness.
