Modi government puts brakes on India’s universal health plan

NEW DELHI, (Reuters) – Indian Prime Minister Narendra Modi has asked for a drastic cutback of an ambitious health care plan after cost estimates came in at $18.5 billion over five years, several government sources said, delaying a promise made in his election manifesto.

Modi has had to make difficult choices to boost economic growth – his government’s first full annual budget, announced last month, ramped up infrastructure spending, leaving less federal funding immediately available for social sectors.

The health ministry developed a draft policy on universal health care in coordination with the prime minister’s office last year. The National Health Assurance Mission aims to provide free drugs, diagnostic services and insurance for serious ailments for India’s 1.2 billion people.