Increasing Public Expenditure on Healthcare

The Twelfth Five Year Plan projected to increase total public fund, plan and non-plan on core health to 1.87 per cent of GDP by the end of Twelfth Plan. The National Health Policy, 2017 envisages increasing public expenditure on health to 2.5% of GDP in a time bound manner by 2025.

As per WHO Global Health Expenditure database 2014, the expenditure on healthcare for BRICS is China (3%), the Russian Federation (4%), Brazil (4%) and South Africa (4%) of Gross Domestic Product. The Government spending on healthcare in India as a percentage of GDP has increased from 1.16% in 2004-05 (Actual) to 1.4% in 2016-17 (BE) as per Economic Survey.

The allocation of funds for health sector is based inter-alia, on the availability of resources and competing claims on these resources. An increase in economic growth makes available increased resources for funding the health sector. In addition to this, availability of overall resources, past utilization, requirements and absorptive capacity inter-alia guide the allocations to the health sector.

The Minister of State (Health and Family Welfare), Smt Anupriya Patel stated this in a written reply in the Rajya Sabha here today.