Out-of-pocket health spending drops from 64.2% in 2014 to 39.4% in 2024

The Indian government’s health expenditure as a share of GDP has risen significantly, reflecting a robust commitment to improving healthcare. According to the National Health Account (NHA) estimates for 2020-21 and 2021-22, government health expenditure increased from 1.13% of GDP in 2014-15 to 1.84% in 2021-22. This rise has been accompanied by a growth in the government’s share of total health expenditure, from 29% to 48% during the same period. Per capita spending on healthcare by the government has also tripled, underscoring substantial progress in public health investment.

One of the key drivers of this improvement is the government’s flagship health scheme, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY), which has saved over Rs 1 lakh crore since its inception. The scheme, along with initiatives like the Free Dialysis Scheme, launched in 2015-16, which has benefited 25 lakh people, has been instrumental in reducing out-of-pocket expenditure (OOPE). The share of OOPE in total health expenditure dropped from 64.2% in 2013-14 to 39.4% in 2021-22, a crucial indicator of financial protection for citizens.

Union Health Secretary Apurva Chandra emphasized that the reduction in OOPE is a positive sign of the government’s success in enhancing healthcare accessibility and affordability. This reflects India’s progress toward Universal Health Coverage (UHC), which aims to provide equitable healthcare services without imposing a financial burden on individuals.

Moreover, the National Health Policy (NHP) 2017 sets a target to raise public health spending to 2.5% of GDP by 2025, demonstrating the government’s long-term focus on strengthening the healthcare system. The rise in health expenditure also coincides with efforts to improve essential drug availability, price regulation for critical medicines, and increased social security spending on health.

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The steady increase in government health expenditure indicates a broad-based effort to enhance healthcare infrastructure and services, reducing the financial strain on households and progressing toward comprehensive health coverage for all citizens.