On April 7, the global community observed World Health Day, sparking concerns within the Indian healthcare sector about its growth trajectory. A recent Lancet report highlighted that the Indian government allocates only 1.2% of GDP to healthcare, ranking among the lowest among G20 nations. The report emphasized the lack of comprehensive health data, citing it as a significant challenge hindering progress, alongside persistent disparities in healthcare access and quality.
In response, a government spokesperson cited the National Health Policy of 2017, aiming to increase public health investment to 2.5% of GDP by 2025. The Ministry of Health and Family Welfare has urged states to prioritize healthcare funding, aiming for a yearly 10% budget increase to meet this goal. Government sources noted a surge in healthcare spending, with out-of-pocket expenditure declining from 62.6% in 2014-15 to 47.1% in 2019-20. The Department of Health and Family Welfare’s budget estimates rose significantly, from Rs.36,948 crore in 2014-15 to Rs.86,175 crore in 2023-24, reflecting a 133.23% increase.
Additionally, the 15th Finance Commission allocated Rs.70,051 crore for health grants to local governments, contributing to the sector’s growth. National Health Accounts data for 2019-20 showed a substantial rise in total health expenditure, increasing from Rs.4,83,259 crore in 2014-15 to Rs.6,55,822 crore.
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