Union Finance Minister Nirmala Sitharaman has not given much allocation to the Health sector in the Budget 2022.

In the budget, she has mentioned the formation of the  National Digital Health Ecosystem. It will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities.

Further, she has proposed to set up National Tele Mental Health Programme with the support of NIMHANS. “The pandemic has accentuated mental health problems in people of all ages. To better access to quality mental health counselling and care services, a ‘National Tele Mental Health Programme’ will be launched. This will include a network of 23 tele-mental health centres of excellence, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support”, she stated in the budget.

Regarding levying of "Health and Education Cess", she clarified that it is not allowed as a business expenditure

Nirmala Sitharaman stated that the income tax is not an allowable expenditure for the computation of business income. "This includes tax as well as surcharges," she said.

"The 'Health and Education Cess' is imposed as an additional surcharge on the taxpayer for funding specific government welfare programs," she explained.

Her clarification comes after some courts in India has allowed "Health and Education Cess" as business expenditure, which is against the legislative intent, the Union Finance Minister reiterated that any surcharge or cess on income and profits is not allowable as business expenditure.