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Public expenditure on health in India exceeds out-of-pocket expenditure: Report

by Sandhya Hirani
October 1, 2024
Public expenditure on health in India exceeds out-of-pocket expenditure: Report

New Delhi, October 1 (IANS). According to the Union Health Ministry, for the first time, according to the National Health Account (NHA) data in India, between 2020-21 and 2021-22, public expenditure on health has overtaken out-of-pocket expenditure.

A recent report released by NITI Aayog revealed that the share of out-of-pocket expenditure in total health expenditure declined to 39.4 percent in 2021-22. Whereas, it was 64.2 percent in 2013-14.

Also, the share of government health expenditure (GHE) in the country’s total GDP increased from 28.6 per cent in 2020-21 to 48 per cent in 2021-22.

The historic shift in health policy has been driven by increased public expenditure. The report says that this will reduce the financial burden on families.

It said this would “ensure financial security and lead to better health coverage for citizens.”

Professor Shamika Ravi, member of the Prime Minister’s Economic Advisory Council, said in a post on Prime Minister Narendra Modi’s government is committed to this, with government expenditure on health care tripling from 2013-14 to 2021-22.”

He further wrote, “For the first time, out-of-pocket expenditure on health in India has fallen below 40 per cent and more importantly, it has outstripped government health expenditure. Which is a milestone for the region.” It is a stone of.

Furthermore, per capita government health expenditure (GHE) has tripled from Rs 1,108 in 2014-15 to Rs 3,169 by 2021-22.

“Government expenditure on health increased by 16.6 per cent between 2019-20 and 2020-21, while registering an unprecedented growth of 37 per cent between 2020-21 and 2021-22,” the estimates show.

As per estimates, total health expenditure is expected to increase from 5.7 per cent in 2014-15 to 8.7 per cent in 2021-22.

The report found a significant increase in social security expenditure (SSE) on health care, which includes government-funded health insurance, medical reimbursements to government employees, and social health insurance programs.

–IANS

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