Cost of VVIP choppers could fund free medicines for all

NEW DELHI: For the price of the 12 choppers from Augusta Westland meant for VVIPs, the central government could provide free medicines for all in public health facilities.

The Working Group on Food and Drugs Regulations for the 12th plan calculated that [color:23aa=#0000FF !important]the Centre would have to allocate over Rs 5000 crore per year to fulfill its share (85%) of the cost of the free medicines for all scheme. The rest would come from the respective states. Rough figures from the budget estimate of 2010-11 show that the central government spent Rs 2500 crore as expenses on medicines. Since it is already shelling out Rs 2500 crore, it would just have to allocate [color:23aa=#0000FF !important]an additional Rs 2500 crore plus to fulfill its promise of the free medicine scheme, which is much lower than [color:23aa=#0000FF !important]the Rs 3500 crore it was willing to give for the VVIP choppers from Italy.

The Working Group document urges setting up of corporations like the Tamil Nadu Medical Supplies Corporation (TNMSC) to supply free, quality generic medicines- essential medicines- to both inpatients and out patients in public health facilities. According to the working group, the Centre's contribution at 85% would be Rs 25,667 crore for the entire five year plan period. The group has accounted for inflation in this estimate. The working group report further points out that bulk medicine prices have not increased in the last five years and adds that "in fact in [color:23aa=#0000FF !important]TNMSC procurement, they have decreased in many cases".

With the distribution of free medicines and quality care, it is hoped that the utilisation of public health facilities, which currently is just 20-25% in India, would at least reach the level in [color:23aa=#0000FF !important]Tamil Nadu of 40%.
Out of all the people who need healthcare in the country, it is estimated that 20% go without healthcare as they cannot afford to access healthcare either public or private. It is hoped that this section of the population would be persuaded to avail of services from public health facilities with the introduction of this new scheme. With that, the percentage of population seeking care from government facilities is expected to touch 52% by 2017, the end of the current five year plan.

Healthcare costs is the second most frequent reason for rural indebtedness and in healthcare, medicines account for 50-80% of the cost of treatment. This should come as no surprise considering the price at which medicines are sold in the open market. For instance, clopidogrel, a blood thinner prescribed for patients at risk of heart disease and stroke, is sold under the brand name Plavix for Rs 1020 for a strip of ten tablets. Plavix is one of the top selling brands in the country despite the fact that the same drug of guaranteed quality is available for as little as Rs 8.25 for a strip of ten. A person prescribed clopidogrel has to take one tablet daily which, if the person was buying Plavix, would cost Rs 3060 per month as opposed to the generic equivalent which would cost just Rs 25 per month.

Similarly, Atorvastatin, a cholesterol-lowering medicine costs about Rs 170 for ten tablets for the branded version and just Rs 18 for the generic one. The branded one would cost Rs 510 per month, as it is one tablet daily. The generic would be just Rs 54. Thus poor people buying from the open market on the prescription of doctors who push more expensive medicines bear huge costs for medicines. It is this sort of impoverishment the government hopes to put an end to through the Free Medicines for All scheme.

http://timesofindia.indiatimes.com/india/Cost-of-VVIP-choppers-could-fund-free-medicines-for-all/articleshow/18723504.cms

what is even weird is this:

http://www.thehindu.com/business/Economy/more-decisions-will-be-announced-chidambaram/article4462523.ece

He said the bulk of the Rs 13,300 crore gains projected from direct taxes in the Budget to come from the 10 per cent surcharge imposed on 42,800 super-rich individuals.

only 42,800 indians admit to incomes greater than 1 crore? and in the same breath he says this:

To a question why an amnesty scheme was not offered to income tax payers like the one given to service tax defaulters, he said there is no case because of the moderate rates and highly computerised system in vogue to deduct any evasion.

Huzefa Kapasi wrote:what is even weird is this:

http://www.thehindu.com/business/Economy/more-decisions-will-be-announced-chidambaram/article4462523.ece

He said the bulk of the Rs 13,300 crore gains projected from direct taxes in the Budget to come from the 10 per cent surcharge imposed on 42,800 super-rich individuals.

only 42,800 indians admit to incomes greater than 1 crore? and in the same breath he says this:

To a question why an amnesty scheme was not offered to income tax payers like the one given to service tax defaulters, he said there is no case because of the moderate rates and highly computerised system in vogue to deduct any evasion.

Really a strange consideration.