Question : Expenditure on Health Sector

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

(a) whether the Government has set any target for percentage expenditure of GDP on health sector;

(b) if so, the details thereof and the actual expenditure incurred during each of the last three years;

(c) whether the country is failing to utilize the budget allocated to Health Ministry and had recently returned over Rs. 1,500 crore of the unutilized funds and if so, the reasons thereof;

(d) whether the Government has set new target of expenditure on health sector to be achieved by 2025;

(e) if so, the details thereof and plan prepared by the Government to achieve it;

(f) whether the Government has decided to introduce health cess, similar to education cess to generate funds from special commodity taxes such as alcohol and tobacco; and

(g) if so, the details thereof and the other alternatives being considered by the Government in this regard?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND
FAMILY WELFARE
(SMT. ANUPRIYA PATEL)
(a) & (b): The National Health Policy proposes raising public health expenditure to 2.5% of the Gross Domestic Product (GDP) in a time bound manner by 2025.

As per Economic Survey 2017-18 (Volume-II) brought out by Ministry of Finance, expenditure by Government (Central and State Governments combined) on health as percentage of GDP for last three years is as under :
(i) 2014-15 - 1.2%
(ii) 2015-16 - 1.1%
(iii) 2016-17 (RE) - 1.5%

(c): The Ministry of Health and Family Welfare had surrendered savings amounting to Rs.2086.04 crore for the year 2016-17.

(d) & (e): The National Health Policy, 2017 proposes raising public health expenditure progressively to 2.5% of the GDP by 2025. The policy envisages that the resource allocation to States will be linked with State development indicators, absorptive capacity and financial indicators. The States would be incentivised for incremental State resources for public health expenditure. General taxation will remain the predominant means for financing care.

(f) & (g): The National Health Policy, 2017 has recommended for imposing taxes on specific commodities- such as the taxes on tobacco, alcohol and foods having negative impact on health, taxes on extractive industries and pollution cess. Funds available under Corporate Social Responsibility would also be leveraged for well-focused programmes aiming to address health goals. The finance Minister in his Budget Speech on 01st February, 2018 has announced a four percent “Health and Education Cess”.