The share of government health expenditure in total health expenditure has increased from 28.6 per cent in FY14 to 40.6 per cent in FY19, highlighted the Economic Survey 2022-23 tabled in Parliament by Union Finance Minister Nirmala Sitharaman here today.
The document also reports a concomitant decline in out-of-pocket expenditure as a percentage of total health expenditure from 64.2 per cent in FY14 to 48.2 per cent in FY19. The Survey also shows the hike in the share of expenditure on health in the total expenditure on social services, which has increased from 21 per cent in FY19 to 26 per cent in FY23 (BE).
The National Health Account (NHA) estimates for FY19 show that there has been an increase in the share of Government Health Expenditure (GHE) in the total GDP from 1.2 per cent in FY14 to 1.3 per cent in FY19. Additionally, the share of GHE in Total Health Expenditure (THE) has also increased over time, standing at 40.6 per cent in FY19, substantially higher than 28.6 per cent in FY14.
Overall, for FY19, Total Health Expenditure (THE) for India is estimated to be Rs 5,96,440 crore (3.2 per cent of GDP and Rs 4,470 per capita). Current Health Expenditure (CHE) is Rs 5,40,246 crore (90.6 per cent of THE) and capital expenditures is Rs 56,194 crore (9.4 per cent of THE). Of the Government Health Expenditure (GHE), Union Government’s share is 34.3 per cent and the State Governments’ share is 65.7 per cent.
The social security expenditure on health, which includes the social health insurance programme, government-financed health insurance schemes, and medical reimbursements made to government employees, has increased from 6 per cent in FY14 to 9.6 per cent in FY19, as per the report tabled in parliament.
The Economic Survey notes that this is a significant increase which shows that citizens are better equipped and better provided in terms of healthcare at their doorstep, making it more accessible. Due to several such steps, Out of-Pocket Expenditure (OOPE) as a percentage of THE has declined substantially from 64.2 per cent in FY14 to 48.2 per cent in FY19.