India’s Health Spending Grows: Government Increases Healthcare Budget and Reduces Personal Costs
The Indian government’s health expenditure as a share of GDP rose from 1.13% in 2014-15 to 1.84% in 2021-22, according to the National Health Account estimates. Government health spending now makes up 48% of total health expenditure, up from 29% in 2014-15. Per capita government healthcare spending has tripled.
Dr. V K Paul, Member (Health) of NITI Aayog, noted a decline in out-of-pocket expenses from 64.2% in 2013-14 to 39.4% in 2021-22. He attributed savings to schemes like Ayushman Bharat PMJAY, which has saved over Rs 1 lakh crore, and the Free Dialysis scheme, which has benefited 25 lakh people since its launch in 2015-16.
Union Health Secretary Apurva Chandra highlighted the substantial increase in government health expenditure and the significant decrease in out-of-pocket expenses, reflecting the government’s focus on health and financial protection for its citizens.
Doubts Revealed
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year.
National Health Account -: National Health Account is a system that tracks all the money spent on healthcare in a country.
Per capita -: Per capita means per person. So, per capita government healthcare spending means the amount of money the government spends on healthcare for each person.
NITI Aayog -: NITI Aayog is a government think tank in India that helps with planning and policy-making.
Out-of-pocket expenses -: Out-of-pocket expenses are the money people pay themselves for healthcare, without any help from insurance or the government.
Ayushman Bharat PMJAY -: Ayushman Bharat PMJAY is a health insurance scheme in India that helps poor families get free medical treatment.
