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India's healthcare spending on the rise: Government investments drive down out-of-pocket costs

Content Editor: Dr Shayari

November 21, 2024 at 12:30:00 PM

Health Financing, Health Budget, Health Expenditure

Content Editor: Dr Shayari
  • The Union Health Ministry has released the latest National Health Account (NHA) estimates for India, revealing a positive trend: increased government spending on healthcare and a decrease in out-of-pocket expenses for citizens.

  • Key Highlights:

    • The share of government health expenditure (GHE) in India's GDP has risen from 1.13% in 2014-15 to 1.84% in 2021-22, reflecting a significant commitment to public health.

    • Per capita government spending on healthcare has tripled since 2014-15, demonstrating the government's proactive approach to tackling healthcare challenges.

    • The share of out-of-pocket expenditure (OOPE) in total health expenditure (THE) has declined from 62.6% to 39.4% between 2014-15 and 2021-22.

  • The Ayushman Bharat PMJAY scheme and the Free Dialysis scheme have played a crucial role in reducing OOPE and improving access to healthcare.

  • This indicates a significant shift towards financial protection and universal health coverage for citizens.

  • The increased government spending on healthcare and the reduction of out-of-pocket costs are positive steps toward building a more equitable and accessible healthcare system in India.

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