Beside the issue of raising the required resources for universal
health care, key questions that need to be answered are: where
should pooling of resources take place, how should the services be
purchased and who should be providing the services? Health care
in India should be largely tax-funded because, besides the
argument of progressivity of general direct taxation [36], large
informal sector employment precludes the option of using payrolltaxes
for funding health care. Theoretical arguments and
empirical evidence to a large extent does not support predominant
role of private sector in universalizing health care due to its
inefficiencies and inequitable nature [37,38]. It can however
continue to play a complementary or supplementary role to cover
for services not covered under the ambit of universal healthcare
package.