Single non-lapsable reserve fund for health gets Union Cabinet’s approval

New Delhi: The Union Cabinet, chaired by Prime Minister, Narendra Modi today approved creation of the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN), a single non-lapsable reserve fund. With the proceeds of Health and Education Cess levied under Section 136-b of the Finance Act, 2007, the fund will be created.

Salient features of the PMSSN:

A non-lapsable reserve fund for Health in the Public Account;

Proceeds of share of health in the Health and Education Cess will be credited into PMSSN;
Accruals into the PMSSN will be utilized for the flagship schemes of the Ministry of Health & Family Welfare namely, Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), Ayushman Bharat – Health and Wellness Centres (AB-HWCs).

National Health Mission

Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)

Emergency & disaster preparedness and responses during health emergencies

Any future programme/scheme that targets to achieve progress towards SDGs and the targets set out in the National Health Policy (NHP) 2017.

Administration and maintenance of the PMSSN is entrusted to Ministry of Health & Family Welfare; and In any financial year, the expenditure on such schemes of the MoHFW would be initially incurred from the PMSSN and thereafter, from Gross Budgetary Support (GBS).


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

In the budget speech 2018, the Union Finance Minister while announcing the Ayushman Bharat Scheme, also announced replacement of existing 3% Education Cess by 4% Health and Education Cess.

Also Read

Comments are closed.