Ahead of the Union Budget 2024 presentation, experts are urging the government to remove or reduce the 18% Goods and Services Tax (GST) on mental health services. They emphasise the need for strategic allocation of resources to build a mentally resilient society, highlighting the significant impact mental health has on productivity and the economy.
‘Mental health issues are highly prevalent and poorly managed, affecting a significant number of our population. In the upcoming Budget, we urge the government to remove or reduce the 18% GST on mental health services,’ said Jyoti Kapoor, Founder & Director of Manasthali Wellness.
Experts point out that the decline in mental health has increased the demand for health insurance policies covering both physical and mental health. However, the high cost of medications and therapies often discourages people from seeking help.
Divya Mohindroo, a counselling psychologist, stressed the need for comprehensive policies to address India’s mental health crisis and called for an increase in the workforce in this sector. ‘Out of an estimated 150 million people needing mental health services, only fewer than 30 million seek help,’ Mohindroo noted.
The shortage of mental health professionals is a major issue in India, with only 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers per 100,000 people. ‘There should be specific measures for mental health, and we are hopeful the Budget will prioritise this urgent issue. There is an immediate need to strengthen India’s mental health workforce, with just one psychiatrist per two lakh people,’ Mohindroo added.
She also suggested providing scholarships to train more professionals to help bridge this gap.
Experts also recommend incorporating mental health services into healthcare insurance coverage. ‘While government centres receive some relief, private practitioners are left burdened. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. This change would help lower costs and increase public accessibility to mental health care,’ Kapoor stated.
‘This will help our citizens access mental healthcare without burdening them financially,’ added Mohindroo.
As the Union Budget 2024 approaches, the focus on mental health is more critical than ever, with experts hopeful that the government will take significant steps to address these pressing issues.
