India registers decline in out-of-pocket expenditure for health: report

This report provides a systematic description of the financial flows in India’s health system by different sources. Representational file image.
| Photo Credit: BISWARANJAN ROUT

India has seen a decline in out-of-pocket expenditure out of total health expenditure from 64.2% in 2013-14 to 39.4% in 2021-22 which reflects a positive indicator as per the National Health Accounts Estimates for India 2020-21 and 2021-22 released by the Health Ministry on Wednesday (September 25, 2024).

It added that the government health expenditure’s share in the country’s total GDP increased from 1.13% (2014-15) to 1.84% (2021-22). Also the share of government expenditure in total health expenditure increased from 29.0% (2014-15) to 48.0% (2021-22). 

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“Per capita government spending on healthcare tripled during this period,” it added.

The methodology taken for these NHA estimates has improved over the last nine years and has resulted in a more robust and accurate account of the government’s expenditure on Health said member, NITI Aayog, V.K. Paul.

This report provides a systematic description of the financial flows in India’s health system by different sources, how the money is spent, how healthcare is provided, and the nature of healthcare services that are used.

Dr. Paul highlighted that “more than ₹1 lakh crore savings have accrued from the Ayushman Bharat PMJAY and this has had a positive impact on the recent NHA estimates. He also stated that other schemes like the free dialysis scheme, launched in 2015-16 has benefited 25 lakh people”.