The Union Health Ministry recently released the National Health Accounts (NHA) estimates for the financial year 2022-23. Importantly, these estimates show that public healthcare spending in India has nearly tripled over the last decade. Specifically, government expenditure on healthcare increased from Rs 1.30 lakh crore in 2013-14 to Rs 3.85 lakh crore in 2022-23. This significant change highlights a robust rise in public investment. Consequently, out-of-pocket expenditure (OOPE) incurred by households on healthcare has declined significantly.
Key Growth in Public Healthcare Spending
Moreover, the share of government health spending in India’s GDP rose from 1.15 per cent in 2013-14 to 1.43 per cent in 2022-23. Indeed, using the new GDP series with base year 2022-23, this figure stands at 1.48 per cent. Furthermore, the share of government spending within the total health expenditure climbed from 28.6 per cent to 43.7 per cent. This shift indicates that public financing is playing a much larger role in the healthcare system. In addition, per capita government expenditure increased nearly 2.7 times from Rs 1,042 to Rs 2,786.
Declining Out-of-Pocket Expenses and Social Security
Simultaneously, out-of-pocket expenditure as a share of total health spending dropped from 64.2 per cent to 43.4 per cent. This massive 21 percentage point decline substantially reduces the financial burden on families seeking medical treatment. Similarly, the share of Social Security Expenditure (SSE) on healthcare increased from six per cent to 9.9 per cent. This category includes major initiatives such as the Ayushman Bharat PM-JAY and other government-funded health insurance schemes. Additionally, private health insurance share rose from 3.4 per cent to 9.2 per cent, reflecting improved health-seeking behavior. Meanwhile, public spending on primary healthcare more than doubled, showing a clear policy direction towards accessible healthcare, which is a foundational aspect of modern general practice.
Impact of the Pandemic on Public Funding
Importantly, the NHA estimates showed a major rise in public funding during the peak of the COVID-19 pandemic. Indeed, emergency response measures and the nationwide vaccination program pushed health expenditure to 1.84 per cent of GDP in 2021-22. During this critical period, household out-of-pocket expenditure declined even further to 39.4 per cent. Therefore, sustained public investment is essential to achieve a highly affordable and equitable healthcare system for everyone, supported by professionals trained in emergency medical services.
Frequently Asked Questions
Q1: What is the current status of government health spending in India’s GDP?
According to the latest National Health Accounts estimates, government health spending rose to 1.43 per cent of the GDP in 2022-23. However, under the new GDP series with base year 2022-23, the figure stands at 1.48 per cent.
Q2: How much did the out-of-pocket healthcare expenditure decline?
The share of out-of-pocket expenditure in total health spending fell significantly from 64.2 per cent in 2013-14 to 43.4 per cent in 2022-23. Consequently, this change reflects a major reduction in the financial burden on households, allowing better access to specialized care such as cardiology services.
References
- – ETHealthworld
- Press Information Bureau (PIB) India – NHA Estimates 2022-23
- The Hindu – Out-of-pocket health expenditure trends
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