Union Cabinet approves creation of Pradhan Mantri Swasthya Suraksha Nidhi as single non-lapsable reserve fund 

The Union Cabinet on March 10, 2021 approved Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for a share of Health from the proceeds of Health and Education Cess levied under Section 136-b of Finance Act, 2007.

Union Cabinet approves 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: Govt of India

— ANI (@ANI) March 10, 2021

Pradhan Mantri Swasthya Suraksha Nidhi: Key Highlights 

•The Pradhan Mantri Swasthya Suraksha Nidhi is a non-lapsable reserve fund for Health in the Public Account. 

•The proceeds from the share of health in the Health and Education Cess will be credited into PMSSN. 

•The revenue earned into the PMSSN will be utilized for Health Ministry's flagship schemes such as National Health Mission, Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana, Ayushman Bharat - Health and Wellness Centres and for emergency and disaster preparedness and responses during health emergencies. 

•The Ministry of Health & Family Welfare will oversee the administration and maintenance of the PMSSN. 

Benefit

The major benefit of the fund will be to ensure enhanced access to universal & affordable health care through the availability of earmarked resources while ensuring that the amount does not lapse at the end of the fiscal year.

Significance

Health is extremely important to achieve an improved developmental outcome, as better health leads to better productivity. 

Health and Nutrition have a bearing on productivity and income and health outcomes depend substantially on public spending on health.