Budget 2025 Expectations| Reduce tax burden by increasing the limits under Section 80D of IT for health insurance, says ManipalCigna Health Insurance CFO Srikanth Kandikonda

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The insurance sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping the fingers crossed regarding their expectations from the government's most important financial document of the year.

Here's what Srikanth Kandikonda – Chief Financial Officer, ManipalCigna Health Insurance has to say--

"With the Hon. Finance Minister presenting the Union Budget in a few days, the health insurance sector stands at a pivotal moment where policy reforms could significantly transform the landscape of healthcare accessibility and coverage in India.

Healthcare costs are rising significantly and expected to double in six years, we urge the government to implement measures that can help make healthcare more affordable for all Indians.

For a healthier Bharat, the outlay for healthcare spend has been proposed to be increased to 2.5 per cent of the GDP by 2025 as per the National Health Policy.

While India’s out-of-pocket expenditure has seen a decline from 64.2% 2013-14 to around 40 per cent in 2021-22 as per the national health accounts estimate, we are still working towards our mission of achieving Universal Health Coverage.

Hence, we request the government to increase outlay for public healthcare spend during this budget, as this is the need of the hour.

Given the rising healthcare costs and the need for higher sum insured cover, the government should reduce tax burden by increasing the limits under Section 80D of income tax for premium paid for health insurance to Rs 50,000 for all and Rs 1 Lakh for senior citizens.

This is crucial for achieving the government's vision 'Insurance for all by 2047’ and would substantially reduce the financial burden on families investing in their health and financial wellbeing."

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.