Note4Students
From UPSC perspective, the following things are important :
Prelims level: Health Expenditure Share of GDP
Why in the News?
The Union government has steadily increased its spending on healthcare, with the expenditure rising to 1.84% of GDP in 2021-22, up from 1.15% in 2013-14.
Overview of India’s Health Expenditure
- India has shown a consistent increase in government spending on healthcare, reflecting a growing commitment to improving the public healthcare system.
- As of 2021-22, government health expenditure (GHE) rose to 1.84% of GDP, up from 1.15% in 2013-14, and is on track to meet the National Health Policy 2017 target of 2.5% of GDP by 2025.
- The rise in health expenditure has been particularly significant post–COVID-19, with a 37% increase in government spending from 2020-21 to 2021-22.
- This has led to better healthcare accessibility, reduced financial burden on individuals, and greater focus on strengthening healthcare infrastructure.
What is Total Health Expenditure?
- Total Health Expenditure (THE) refers to the sum of all current and capital expenditures incurred by the government, private sector, and external sources for healthcare purposes in a given period.
- This includes:
- Current Health Expenditure (CHE): Ongoing spending on healthcare services, such as hospitals, doctor visits, and medical supplies.
- Capital Expenditure: Investments in healthcare infrastructure, such as building hospitals or purchasing medical equipment.
- In 2020-21, India’s THE was estimated at ₹7,39,327 crores, constituting 3.73% of GDP, with a per capita expenditure of ₹5,436.
- In 2021-22, this figure increased to ₹9,04,461 crores, representing 3.83% of GDP, reflecting a proactive government response to healthcare challenges and pandemic management.
Reasons for Reduced Out-of-Pocket Expenditure (OOPE)
The reduction in OOPE can be attributed to:
- Increased government health spending, making healthcare more affordable.
- Expansion of public health services, including vaccination and preventive care.
- Growth in government-funded health insurance and social security programs, reducing reliance on personal funds.
- Health initiatives like Ayushman Bharat have eased the financial burden.
- Improved public healthcare access and financial protection have reduced hardship for low- and middle-income families.
PYQ:[2021] “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse. |
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