The Union Health Ministry recently released the National Health Accounts estimates for 2022-23. This report showcases a dramatic transformation in healthcare spending in India. Specifically, public funding for health has nearly tripled over the last decade. It rose from Rs 1.30 lakh crore to Rs 3.85 lakh crore. Consequently, this shift indicates a much stronger government commitment to public health. Furthermore, public health spending as a share of GDP increased from 1.15% to 1.43%.

Decadal Surge in Healthcare Spending in India

To begin with, the new GDP series with base year 2022-23 places government spending at 1.48% of GDP. In addition, the per capita government health expenditure grew nearly 2.7 times during this decade. It increased from Rs 1,042 to Rs 2,786. Therefore, citizens now benefit from higher public investment per head. During the pandemic, public spending peaked at 1.84% of GDP because of emergency healthcare responses. Subsequently, this emergency infrastructure has continued to support the overall system.

Declining Household Financial Burden

Importantly, the rise in government allocations has led to a significant drop in household healthcare costs. Indeed, out-of-pocket expenditure (OOPE) placed a heavy financial burden on Indian families. However, the OOPE share in total health expenditure has declined dramatically. It fell from 64.2% in 2013-14 to 43.4% in 2022-23. Consequently, patients are experiencing greater financial protection during medical emergencies. Additionally, during the pandemic, the OOPE share dropped further to 39.4%. As a result, families are less vulnerable to catastrophic health spending.

Strengthening Primary Care and Social Security

Moreover, the government has focused heavily on primary healthcare services. Specifically, government expenditure on primary care more than doubled over the decade. It increased from Rs 0.5 lakh crore to Rs 1.4 lakh crore. Similarly, Social Security Expenditure (SSE) on healthcare saw an impressive rise. The share of SSE in total health expenditure rose from 6% to 9.9%. For instance, this category includes government-funded health insurance schemes like Ayushman Bharat (AB PM-JAY). Meanwhile, private health insurance also expanded from 3.4% to 9.2%. Overall, these developments show that India's health financing is moving toward universal health coverage.

Frequently Asked Questions

Q1: What is the current share of government health expenditure in India's GDP?

According to the National Health Accounts 2022-23 report, government health expenditure stands at 1.43% of GDP, and 1.48% when calculated using the revised GDP series with base year 2022-23.

Q2: How much did out-of-pocket expenditure on health decrease over the decade?

Out-of-pocket expenditure as a share of total health expenditure fell significantly from 64.2% in 2013-14 to 43.4% in 2022-23, indicating a reduced financial burden on households.

Q3: What was the primary driver of public health spending on primary care?

The government's primary healthcare spending more than doubled over the decade, rising from Rs 0.5 lakh crore in 2013-14 to Rs 1.4 lakh crore in 2022-23, to ensure better access to essential services.

Disclaimer: This content is for informational and educational purposes only. It does not constitute medical advice or replace professional judgment. Refer to the latest local and national guidelines for clinical practice.

References

1. - ETHealthworld


2. Ministry of Health and Family Welfare (MoHFW), Press Information Bureau (PIB) India.


3. National Health Accounts Technical Secretariat, NHSRC India.