MINISTER OF STATE FOR PLANNING, SCIENCE &TECHNOLOGY AND EARTH SCIENCES (DR. ASHWAN1 KUMAR)
(a)& (b): A High Level Expert Group (HLEG) on Universal Health Coverage (UHC) was
constituted by the Planning Commission. The relevant recommendation (page 12) of the High
Level Expert Group (HLEG) reads as under:
Recommendation 3.1.3: Use general taxation as the principal source of health care
Financing - complemented by additional mandatory deductions for health care from salaried
individuals and tax payers, either as a proportion of taxable income or as a proportion of
salary.
HLEG has stated that that general taxation is the most viable option for mobilizing
resources to achieve the target of increasing public spending on health and creating mechanisms
for financial protection.
HLEG has further mentioned that the potential for additional revenue mobilisation from
taxation is high given the projected rates of economic growth, the anticipated improvements in
the efficiency of tax collections, and expected increases in both the organised sector base and
the tax-payer base.
HLEG has further mentioned that it would be appropriate to complement general taxation
with a specific surcharge on salaries or taxable income to pay for UHC and offer cashless
health care to all sections of the society. While improving the tax-to-GDP ratio is necessary,
it is equally important to increase the share of overall public spending devoted to health.
The report of the HLEG is under examination and recommendations approved by the
Government would be implemented in the 12th Five Year Plan.
(c): As per National Health Accounts, India, 2004-05, total health expenditure during
2004-05 was 4.25% of the GDP. The implementation of the proposed scheme will increase the
public expenditure on health from the current level of 1.2% of GDP to 2.5% by the end of
the 12th plan.
(d): As per the report of WHO Health Statistics, 2011 the comparative percentage of
expenditure on health services in India with developed countries is as follows :
Name of the Country Total expenditure on health as % of GDP (year 2008)
India 4.2
USA 15.2
United Kingdom 8.7
China 43
Japan 8.3
France 11.2
Australia 8.5
Russia 4.8
Canada 9.8
source: WHO Health statistics, 2011
