NEW DELHI: Government expenditure on healthcare in India has seen a significant surge, nearly tripling over the past decade to reach ₹3.85 lakh crore in the fiscal year 2022-23. This substantial increase in public investment has been accompanied by a considerable decline in out-of-pocket spending by households on medical treatments, according to the National Health Accounts (NHA) estimates released by the Union Health Ministry.
Information was available with The Chenab Times indicating that government health expenditure rose from ₹1.30 lakh crore in 2013-14 to ₹3.85 lakh crore in 2022-23. This growth reflects a strategic emphasis on enhancing public health infrastructure and services across the nation. The report also detailed that the share of government health spending in the country’s Gross Domestic Product (GDP) increased from 1.15 per cent in 2013-14 to 1.43 per cent in 2022-23. Based on the new GDP series with the base year 2022-23, this figure stands at 1.48 per cent.
The substantial rise in public spending has directly contributed to a notable reduction in the financial burden faced by individuals seeking healthcare. Out-of-pocket expenditure, which represents the amount spent directly by households on healthcare services and medicines, fell from 64.2 per cent of total health expenditure in 2013-14 to 43.4 per cent in 2022-23. This decrease signifies a positive shift towards a more affordable healthcare system for Indian citizens.
Concurrently, the proportion of government health expenditure within the total health expenditure basket has also grown substantially. It increased from 28.6 per cent in 2013-14 to 43.7 per cent in 2022-23, marking an increment of nearly 15 percentage points. This trend highlights the pivotal role of public financing in strengthening the national health system and indicates that policy initiatives are effectively moving towards ensuring a healthcare system that is more equitable and accessible to all segments of the population.
On a per capita basis, Government Health Expenditure has seen a near 2.7-fold increase, climbing from ₹1,042 in 2013-14 to ₹2,786 in 2022-23. This upward trend underscores the government’s commitment to improving health outcomes and ensuring greater financial protection for its citizens.
The NHA estimates also shed light on the impact of the COVID-19 pandemic on health spending. During this period, government expenditure on healthcare saw a significant acceleration, reaching 1.84 per cent of GDP in 2021-22. This surge was attributed to emergency response measures, the implementation of COVID-19 response packages, and the nationwide vaccination program. During the pandemic, out-of-pocket expenditure as a share of total health expenditure further declined to 39.4 per cent.
Reducing the financial burden of out-of-pocket expenses for households has been a central priority for the government, pursued through various health schemes and a sustained commitment to achieving Universal Health Coverage (UHC). Between 2013-14 and 2022-23, the share of out-of-pocket expenditure in total health expenditure dropped by nearly 21 percentage points, from 64.2 per cent to 43.4 per cent.
Further analysis of intertemporal trends reveals a positive development in Social Security Expenditure (SSE) on healthcare. The share of SSE in total health expenditure, which encompasses government-funded health insurance schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), medical reimbursements for government employees, and social health insurance programs, rose substantially from 6 per cent in 2013-14 to 9.9 per cent in 2022-23. This growth reflects the government’s dedication to providing financial risk protection and mitigating health inequities.
The report also noted an increase in the share of private health insurance in total health expenditure, from 3.4 per cent to 9.2 per cent during the same period. This rise is indicative of improved health-seeking behaviors among the population, potentially driven by increased awareness and enhanced purchasing power.
Expenditure on primary healthcare by the government also more than doubled, escalating from ₹0.5 lakh crore in 2013-14 to ₹1.4 lakh crore in 2022-23, signaling a stronger focus on foundational healthcare services.
The National Health Accounts estimates are compiled by the National Health Accounts Technical Secretariat under the National Health Systems Resource Centre, adhering to the internationally accepted System of Health Accounts 2011 framework.
The Chenab Times News Desk