Union Cabinet Clears PM Swasthya Suraksha Nidhi as a Single Non-lapsable Reserve Fund

pm yojna

The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for a share of health from the proceeds of Health and Education Cess levied under Section 136-b of Finance Act, 2007.


The major benefit of the scheme is aimed at enhanced access to universal and affordable healthcare through availability of earmarked resources, while ensuring that the amount does not lapse at the end of the financial year.

 PMSSN Features

  1. A non-lapsable reserve fund for Health in the Public Account;
  2. Proceeds of the share of health in the Health and Education Cess will be credited into PMSSN;
  3. 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.
  1. Administration and maintenance of the PMSSN is entrusted to the Ministry of Health & Family Welfare; and
  2. 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).

Health is vital for improved developmental outcomes. From an economic standpoint, better health improves productivity and reduces losses due to premature death, prolonged disability and early retirement. Health and nutrition also directly impact scholastic achievements and have a bearing on productivity and income.  Health outcomes depend substantially on public spending on health.  One extra year of population life expectancy raises GDP per capita by 4%, Investment in health creates millions of jobs, largely for women, through a much-needed expansion of the health workforce.


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

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