Question : Expenditure on Health Care

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

(a) the expenditure on healthcare in terms of percentage of GDP in India vis-a-vis in the developed/developing countries of the world during the last three years and the current year;

(b) whether the expenditure on health is low in public sector compared to the private sector, if so, the details thereof;

(c) whether the Government proposes to increase State’s expenditure on health sector to address the shortcomings in the healthcare system;

(d) if so, the details thereof and financial assistance provided to States/UTs during the last three years and the current year; and

(e) the steps taken/being taken by the Government to provide more funds and improve healthcare facilities in the country?

Answer given by the minister

(a): A statement showing health expenditure as percentage of Gross Domestic Product (GDP) in India vis-à-vis select developed/ developing countries for 2013, 2014 and 2015 as available in the World Health Organization Global Health Expenditure database is given at Annexure-I. As per Economic Survey 2016-17 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 - 1.4%
(iii) 2016-17 - 1.5%

(b): As per National Health Accounts Estimates for India 2014-15, Government expenditure on health in India is estimated to be 29% of total health expenditure.

(c): Apart from increasing the budgetary outlay under National Health Mission (NHM), the Government has taken the following initiatives to increase State expenditure on health sector to address the shortcoming in the healthcare system:
i) Keeping in view of the recommendations of 14th Finance Commission, with effect from Financial Year 2015-16, the Centre-State funding ratio has been increased from 75:25 to 60:40.
ii) As per the MoU signed with the States under NHM, the States are directed to increase their State health budget by at least 10% in each year.

The National Health Policy, 2017 states that the resource allocation to States will be linked with State Development indicators, absorptive capacity and financial indicators.

(d): A statement showing release of funds to States/UTs under National Health Mission during last three years and current year is given at Annexure-II.

(e): The Government is committed to increasing public health expenditure and its optimum utilization for maximum output as reflected in the several initiatives taken which, inter-alia include :
? The National Health Mission (NHM) providing free of cost health care in the public health facilities through a nationwide network of Community Health Centres (CHCs), Primary Health Centres (PHCs) and Sub Centres (SCs) in both rural and urban areas. In addition programmes for maternal health, children and adolescents etc. are being implemented.

? Making available tertiary health care services in the public sector through strengthening of hospitals, establishment of AIIMS institutions in the States and up-gradation of existing Government medical colleges across the country.

Download PDF Files