Question : Public Health Spending

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

(a) whether the healthcare expenditure in the country vis-a-vis GDP is one of the lowest globally, if so, the details thereof along with the percentage of GDP spent on healthcare during each of the last five years;

(b) whether the Government proposes to finalise a roadmap to gradually increase public health spending to 2.5 per cent of the GDP by 2025, if so, the details along with the current status of the plan;

(c) the details of per capita expenditure being incurred on health in the country, separately by Government and private sector;

(d) whether the Government has formulated/proposes to formulate any action plan to provide free/affordable health services in the country, especially to the poor, if so, the details thereof; and

(e) the other necessary steps taken by the Government to strengthen the health sector including in the rural areas during the last five years along with the outcome thereof?

ANSWER
THE MINISTER OF HEALTH AND FAMILY WELFARE
(DR. HARSH VARDHAN)

(a) to (e): A statement is laid on the Table of the House



STATEMENT REFERRED TO IN REPLY TO LOK SABHA
STARRED QUESTION NO. 100 FOR 7TH FEBRUARY, 2020

(a) As per the Global Health Expenditure Database of WHO (GHED), for the year 2017, India ranks 166th out of 184 countries in Domestic General Government Health Expenditure as a percentage of Gross Domestic Product (GDP).

As per the Economic Survey 2019-20, General Government (Centre and States) expenditure on health as a percent of GDP in India during the last five years is as follows:

Year General Government expenditure on health as percentage of GDP
2019-20(BE) 1.6%
2018-19(RE) 1.5%
2017-18 1.4%
2016-17 1.4%
2015-16 1.3%


(b) The National Health Policy, 2017, envisages raising public health expenditure to 2.5% of GDP by 2025.

In 2018-19, Government announced 4% Health and Education Cess in place of 3% Education Cess on personal Income Tax and Corporation Tax, to cater to the education and health needs of poor and rural families. In addition, Higher Education Funding Agency (HEFA) has started supporting infrastructure works of medical Institutions.

In the Budget 2020-21, it has been proposed that Health Cess of 5% on import of medical devices will be imposed and the proceeds of the Health Cess will be used for financing health infrastructure and services.

(c) As per National Health Accounts (NHA) Estimates, the per capita Total Health Expenditure (Public + Private) and per capita Government Health Expenditure during the years 2013-14, 2014-15, 2015-16 and 2016-17(latest available) is as follows:
Per capita Health Expenditure ( in Rs)
Year Per Capita Total Health Expenditure Per Capita
Government Health Expenditure
2013-14 3638 1042
2014-15 3826 1108
2015-16 4116 1261
2016-17 4381 1418
(d) & (e) Public health and Hospitals being a State subject, the primary responsibility of strengthening the health sector in the States lies with the respective State Governments. However, to improve the health outcomes of the population at large, Union Government has taken several steps to provide affordable healthcare facilities across the country.

The Major steps taken are: Launch of Ayushman Bharat, with its two components: i) to establish Health & Wellness Centres across the country to provide Comprehensive Primary healthcare, and ii) Pradhan Mantri Jan Arogya Yojana which provides health cover of Rs. 5.00 lakh per family per year to around 10.74 crore poor and vulnerable families.

In addition, through the National Health Mission (NHM), Govt of India supplements the efforts of the State/UT Governments to provide accessible, affordable and quality healthcare to all those who access public health facilities especially in rural areas. NHM support is also provided for provision of a host of free services related to maternal health, child health, adolescent health, family planning, universal immunization programme, and control of Communicable and Non-Communicable diseases. Further under NHM, Free Drugs and Free Diagnostics Service Initiatives, PM National Dialysis Programme are being implemented to provide essential medicines, diagnostics and dialysis services in public health facilities.

Major expansion of facilities in Government hospitals has taken place in recent years. 21 new AIIMS have also been sanctioned. 157 Government Medical colleges have been sanctioned by upgrading district hospitals to improve healthcare facilities for poor citizens. In addition, free treatment is being provided to poor citizens by State Governments through Government hospitals using funds provided under NHM.


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