Union Cabinet approves single non-lapsable reserve fund for health

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The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has 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.

Salient features of the PMSSN:

• A non-lapsable reserve fund for health in the public account;
• Proceeds of share of health in the Health and Education Cess will be credited into PMSSN;
• Accruals into the PMSSN will be utilised for the flagship schemes of the Ministry of Health & Family Welfare namely: 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) and Emergency & disaster preparedness and responses during health emergencies

Any future programme/scheme that targets to achieve progress towards SDGs and the targets set out in the National Health Policy (NHP) 2017.

• Administration and maintenance of the PMSSN is entrusted to Ministry of Health & Family Welfare; 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).

The major benefit includes enhanced access to universal and affordable healthcare through the availability of earmarked resources while ensuring that the amount does not lapse at the end of the financial year.