The government on Wednesday allocated Rs 48,853 crore for the health sector for the financial year 2017-18 -- a 23 per cent increase, and announced two new All India Institutes of Medical Sciences (AIIMS) in Jharkhand and Gujarat.

Aiming to reach out to the rural populace with better health care, Finance Minister during his Budget speech for 2017-18 said: "Two new AIIMS will come up in Jharkhand and Gujarat."

Though Jaitley did not announce the total budget allocated to the health sector, the budget copy showed that Rs 48,853 crore has been allocated against Rs 39,688 for the period 2016-17.

On other health initiatives, Jaitley said the government has prepared an action plan to eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018 and Measles by 2020.

"Elimination of tuberculosis by 2025 is also targeted. Similarly, action plan has been prepared to reduce Infant Mortality Rate(IMR) from 39 in 2014 to 28 by 2019 and Maternal Mortality Rate (MMR) from 167 in 2011-13 to 100 by 2018-2020," said Jaitley.

According to the government, 1.5 lakh Health Sub Centres will be transformed into Health and Wellness Centres.
Stating that there was a need to ensure adequate availability of specialist doctors to strengthen Secondary and Tertiary levels of healthcare, Jaitley said: "We have therefore decided to take steps to create additional 5,000 Post Graduate seats per annum."

"In addition, steps will be taken to roll out DNB (Diplomate of National Board) courses in big District Hospitals; strengthen Post Graduate teaching in select ESI and Municipal Corporation Hospitals; and encourage reputed Private Hospitals to start DNB courses. We will work with the state governments to take these tasks forward," said Jaitley.

He on the occasion also said the Government is committed to take necessary steps for structural transformation of the Regulatory framework of Medical Education and Practice in India.

"We propose to amend the Drugs and Cosmetics Rules to ensure availability of drugs at reasonable prices and promote use of generic medicines. New rules for regulating medical devices will also be formulated. These rules will be internationally harmonised and attract investment into this sector. This will reduce the cost of such devices," said Jaitley.