Health spending trends in previous years
Health spending as a proportion of GDP declines first time in 15 years. According to the most recent national health figures, India’s total health spending decreased from 3.2% of GDP in 2013–14 to 3.2% in 2018–19. Total health spending is a sum of money that public have spent on healthcare in the private sector, and other sources. National Health Accounts Estimates 2018–19, a report, was made public on September 12, 2022.
The trend was matched by the Union government. As its spending on healthcare decreased from 1.35 percent of GDP in 2017–18 to 1.28 percent of GDP in 2018–19. The reduction is even more noticeable as total healthcare spending has climbed from 29.9% in 2014–15 to 40.6% in 2018–19.
Household out-of-pocket healthcare spending
Household out-of-pocket healthcare spending, which is a significant factor in the poverty of Indians, has decreased by 16 percentage points over the same time period, from 64.2% to 48.2%. At 69.4% in 2004–2005, it was even higher. Although this is a nice improvement, the ratio is still much higher than the global average, which according to the World Bank was 18.1% in 2019.
A closer examination of the data reveals wide state-wise discrepancies. In Uttar Pradesh, out-of-pocket medical expenses share is 71.3% of the state’s overall medical costs (THE). Only 24.8% of THE is under the control of the state government. Other states with a high out-of-pocket health care expenditure share are Himachal Pradesh (48%), Odisha (53.2%), Telangana (48%), and West Bengal (68.7% of THE) (45.8 percent).
Households in India bear a considerable portion of the cost of healthcare. They contributes Rs 3,24,717 crore to the country’s current healthcare budget. Local bodies contribute Rs 5,451 crore. The Union government’s contribution is Rs 63,256 crore. And the state governments contribution stands Rs 1,06,056 crore. Spending by non-governmental organizations totals Rs 8,484 crore. The money from donors and other sources comes to roughly Rs 2,493 crore.
NHA figures on health spending are crucial
According to the report, NHA figures are crucial as they provide answers to the “key policy concerns. These include like, what are the sources of healthcare expenditures? Who administers these? Who provides health care services? And which services are utilized?”
The majority of the government’s recent spending (55%) has gone toward improving primary healthcare facilities.
The values are approximate that have used the System of Health Accounts 2011 (SHA 2011.) A worldwide standard framework for comparisons of healthcare spending across nations is a need of the hour. The majority of the government’s recent spending (55%) has gone toward improving primary healthcare facilities.
said in a statement on September 12 that this
Not only provides quality services at the grassroots level but also decreases the possibilities of diseases requiring secondary or tertiary health care services.
Rajesh Bhushan, Health Secretary, Govt of India
The health secretary said that the growth in social security spending in THE—from 6% in 2013–2014 to 9.6% in 2018–2019—reflected initiatives taken to attain national universal health coverage.