NEW DELHI: Government spending on healthcare in India has nearly tripled over the last decade, while the amount families spend directly from their own pockets on treatment has sharply declined, according to the latest National Health Accounts (NHA) estimates released by the Union health ministry.
Key Findings on Government Health Expenditure
The report showed that Government Health Expenditure (GHE) increased from ₹1.30 lakh crore in 2013-14 to ₹3.85 lakh crore in 2022-23, reflecting a major rise in public investment in healthcare. Government health expenditure as a share of GDP increased from 1.15% to 1.43% during the period, while its share in Total Health Expenditure rose from 28.6% to 43.7%.
Decline in Out-of-Pocket Expenditure
One of the biggest changes highlighted in the report was the fall in Out-of-Pocket Expenditure (OOPE) — the money households spend directly on medicines, hospitalisation and treatment. OOPE as a share of Total Health Expenditure declined from 64.2% in 2013-14 to 43.4% in 2022-23. The ministry said the decline reflected improved access to public healthcare services and financial protection schemes, including expansion of more than 1.8 lakh Ayushman Arogya Mandirs providing free medicines, diagnostics and primary healthcare closer to communities.
Impact of Government Schemes
The report also cited findings from the NSO’s 80th round survey showing a decline in household medical spending, including zero median out-of-pocket expenditure for outpatient care at public health facilities. Officials said medicines and health supplements continue to remain the biggest contributor to household medical expenses. To reduce this burden, the government expanded free drug schemes and increased access to low-cost medicines through Jan Aushadhi Kendras, AMRIT pharmacies and price control measures.
Pandemic Boost and Primary Healthcare
Government spending on healthcare received an additional push during the Covid-19 pandemic, rising to 1.84% of GDP in 2021-22 to support emergency response measures and the nationwide vaccination programme. The report also showed that government expenditure on primary healthcare more than doubled from ₹0.5 lakh crore in 2013-14 to ₹1.4 lakh crore in 2022-23, while per capita government health spending increased from ₹1,042 to ₹2,786.
Social Security Expenditure
Social Security Expenditure on healthcare, including Ayushman Bharat PM-JAY and government-funded insurance schemes, increased from 6% to 9.9% of Total Health Expenditure during the decade.
