The Hindu Business Line : Insurance-backed healthcare for BPL population soon

THE Kerala State Planning Board will introduce an insurance-linked healthcare scheme for those below poverty line (BPL) in the State. As much as 37 per cent of the population could count itself under the BPL category, by the State Government's own admission.

Speaking to newspersons here, Mr C.V. Padmarajan, Vice Chairman of the Planning Board, said the proposal would be given a final shape by September this year before it could be forwarded to the State Government for its consideration.

Traditionally, education and health accounted for the greatest shares of the State Government's expenditure. Health sector spending continued to grow even after 1980 during a time when its fiscal deficit was growing and the Government has had to look for ways to control expenditure.

But growth in the number of beds and institutions in the public sector had slowed down by the mid-1980s. During 1986-1996, growth in the private sector surpassed that in the public sector by a wide margin.

Asked about the financial viability of the new scheme and its likely impact on a Government hard pressed for cash for routine spending, Mr Padmarajan said the Planning Board was fully aware of the implications and was studying various options.

Answering a specific question, he said the scheme would not in any manner compromise the services being offered by Government-run hospitals. In fact, it would only go to complement these services and help strengthen the overall healthcare system.

Plan process reviewed: He said the Planning Board had held a full-fledged meeting chaired by the Chairman and Chief Minister, Mr Oommen Chandy, only the previous day to review the progress of implementation of the Plan for the year 2004-05.

The meeting assessed the Plan expenditure achieved for the period as bordering on 90 per cent of the total outlay of around Rs 4,700 crore.

"This is only provisional figures; we expect it to go up to 94 per cent at the time of the final analysis," Mr Padmarajan said.

The Board has also resolved to carry out a rapid review of the status of implementation and measures for expeditious completion of all ongoing externally-assisted projects as also key projects implemented with Plan assistance from the State or the Centre.

The Vice-Chairman said the Board would henceforth adopt a new development strategy with focus trained on three main goals — accelerating economic growth for job creation and poverty alleviation; improving the quality of governance and public services, and upgrading higher education.

The underlying stress would be on raising the standard of living and quality of life of common people and accounting for unemployment and poverty.

This strategy would also aim at enhancing the investment flow into the State, both in the public and private sectors. Other deliverables included revival of the agriculture and traditional industries sectors; improving the quality of health services for the poor; hastening poverty alleviation and strengthening of social security programmes.

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