Centre approves creation of PMSSN fund with an initial corpus of Rs 20,000 crore

The Union Cabinet on Wednesday approved the creation of a non-lapsable reserve fund with an initial corpus of Rs 20,000 crore to fund the flagship schemes of the Union Health Ministry including the family medical insurance provided under Ayushman Bharat for the poor and backward families.

Named Pradhan Mantri Swasthya Suraksha Nidhi, the new fund for the health sector has been created from the proceeds of health and education cess, which was announced by then Finance Minister Arun Jaitley in 2018 to infuse resources into the health and education sector. The fund would be managed and administered by the Health Ministry.

In the current fiscal, the fund is likely to have a capital of Rs 20,000 crore, health ministry sources told DH.

In any financial year, the expenditure on flagship schemes would be initially incurred from the PMSSN after which the resources allocated in the annual budget will be tapped.

The major benefit, according to an official statement, will be enhanced access to universal and affordable health care through the availability of earmarked resources, while ensuring that the amount does not lapse at the end of the financial year.

The PMSSN funds will be utilised for both arms of Ayushman Bharat - the medical insurance scheme for the poor and maintaining the health and wellness centres in villages, National Health Mission, Pradhan Mantri Swasthya Suraksha Yojana to improve health infrastructure, emergency and disaster preparedness and responses during health emergencies.

Future programmes could also come under its ambit if they match the targets set out in the National Health Policy, 2017.