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The Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) was approved by the Union Cabinet in March 2021 as a non-lapsable reserve fund for health. It aims to ensure that the proceeds of the Health and Education Cess are dedicated to health sector investments and do not lapse at the end of the financial year. This provides a sustained and dedicated source of funding for critical health schemes and infrastructure.
Target Beneficiaries: Entire population of India (140 crore) through improved tertiary healthcare services, 22 new AIIMS, upgraded medical colleges, and enhanced health infrastructure across underserved regions
Implementing Agency: Ministry of Health and Family Welfare
Funded primarily through the proceeds of Health and Education Cess levied under Section 136B of the Finance Act, 2018. It is a non-lapsable reserve fund, ensuring continuous availability of funds.
Funding Ratio (Centre:State): 100% derived from the proceeds of the Health and Education Cess (4%) levied on Income Tax and Corporation Tax.
GS Paper: GS2
Syllabus Tags
Approved by the Union Cabinet in March 2021 to manage the Health and Education Cess proceeds effectively under a single non-lapsable fund in the Public Account.
The health insurance component of Ayushman Bharat funded by PMSSN.
The tertiary care infrastructure component (AIIMS etc.) funded by PMSSN.
Metric
₹50,000 Crore +
Source: Budget Documents / Ministry of Finance
Metric
22
Source: PIB
PMSSN is a fiscal innovation designed to solve the problem of 'budgetary uncertainty' in health spending. By creating a non-lapsable pool from the 4% Health and Education Cess, the government ensures that health funds do not revert to the general treasury at the end of the fiscal year. This provides a steady stream of revenue for flagship schemes like PM-JAY and PMSSY (setting up of AIIMS). The critical challenge lies in ensuring 'additionality'—i.e., this fund should supplement, not replace, regular budgetary allocations for health. If regular allocations are reduced because of PMSSN, the net gain for the health sector remains zero.
How does the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) contribute to the sustainability of health financing in India? Discuss its role in achieving Universal Health Coverage.
PMSSN is a key tool for achieving the National Health Policy 2017 goal of spending 2.5% of GDP on health. It reflects 'Fiscal Responsibility' in social sector funding. Discuss it as a mechanism to shield vital health programs from economic cyclicality. Mention its role in strengthening the 'Continuum of Care' by funding both primary (NHM) and tertiary (PMSSY) health.