Question : Allocation for Health Sector

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

(a) the percentage of GDP allocated by the Union Government for health sector during each of the last three years and actual expenditure incurred thereon;

(b) whether despite need of massive infrastructure and resource crunch, the Union Government has failed to utilise the health budget and recently surrendered over Rs. 1,500 crore of the unutilised funds, if so, the reasons therefor;

(c) whether the Union Government has set up any target of expenditure on health sector to be achieved by 2025;

(d) if so, the details thereof and whether the Union Government has prepared any plan to achieve the desired goal, if so, the details thereof; and

(e) whether the Government has any proposal to introduce a health cess and if so, the details thereof and the logic behind it and the other alternative being considered by the Government in this regard?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND
FAMILY WELFARE
(SHRI FAGGAN SINGH KULASTE)

(a): The expenditure on health by Government of India as percentage of Gross Domestic Product (GDP) for last three years i.e. 2014-15 (Actual), 2015-16 (BE) and 2016-17 (BE) is estimated as 0.33%, 0.31% and 0.33% respectively. The expenditure on health by Government of India for last three years i.e. 2014-15 (Actual), 2015-16 (BE) and 2016-17 (BE) is estimated as Rs.40,563.49 crore, Rs. 42,713.16 crore and Rs. 49,874.33 crore respectively.

(b): The Ministry of Health and Family Welfare had surrendered of savings amounting to Rs. 695.77 crore for the year 2015-16, mainly due to less procurement than anticipated and slow pace of expenditure under capital section.

(c) to (e): The National Health Policy, 2017 envisages 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. The National Health Policy, 2017 has recommended that Government could consider 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.