Health expenditure at 2.1% of GDP in FY23: Economic Survey
The Survey said that the increase in the share of expenditure on health in total expenditure on social services, which has risen from 21% in FY19 to 26 % in FY23 (BE), underscores the rising importance of public healthcare and social security in ensuring universal health coverage
New Delhi: The central and state governments’ budgeted expenditure on healthcare touched 2.1 % of GDP in FY23 and 2.2% in FY22, against 1.6% in FY21, as per the Economic Survey 2022-23 tabled in Parliament by finance minister Nirmala Sitharaman on Tuesday.
The Survey said that the increase in the share of expenditure on health in total expenditure on social services, which has risen from 21% in FY19 to 26 % in FY23 (BE), underscores the rising importance of public healthcare and social security in ensuring universal health coverage.
While social security expenditure on health increased from 6% in FY14 to 9.6% n FY19, the Economic Survey indicated that out of-pocket expenditure (OOPE) as a percentage of total health expenditure has declined substantially from 64.2% in FY14 to 48.2% in FY19 reflecting better access to healthcare facilities for citizens.
“The social security expenditure on health, which includes the social health insurance programme, government-financed health insurance schemes, and medical reimbursements made to government employees, has increased from 6% in FY14 to 9.6% in FY19,” it said.
The National Health Policy, 2017, envisages “the attainment of the health and well-being for all the people through a preventive and promotive healthcare”.
“The National Health Account (NHA) estimates for FY19 show that there has been an increase in the share of government health expenditure in the GDP from 1.2% in FY14 to 1.3% in FY19. Additionally, the share of GHE in total health expenditure has also increased over time, standing at 40.6% in FY19, substantially higher than 28.6%in FY14.”
“Overall, for FY19, total health expenditure for India is estimated to be Rs.5,96,440 crore (3.2% of GDP and ₹4,470 per capita). Current health expenditure is Rs.5,40,246 crore (90.6% of total health expenditure) and capital expenditure is Rs.56,194 crore (9.4 per cent of the total). Of the Government Health Expenditure (GHE), the Union government’s share is 34.3% and the state governments’ share is 65.7%,” the Survey said.
Primary healthcare expenditure has also increased, rising from 51.1% in FY14 to 55.2% in FY19. This not only ensures quality services at grassroot level but also reduces the chances of ailments requiring secondary or tertiary healthcare services.
Between FY14 and FY19, the share of primary and secondary care in the government’s health expenditure increased from 74.4% to 85.7%. On the other hand, share of primary and secondary care in private health expenditure has declined from 82.0% to 70.2% during the same period.
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First Published:31 Jan 2023, 03:51 PM IST
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