The Economic Survey 2023-2024 reveals that the latest National Health Accounts (NHA) estimates indicate an increase in the share of Government Health Expenditure (GHE) in the total GDP as well as in the Total Health Expenditure (THE). The data, compiled for the financial year 2019-20 (FY20), showcases the government’s commitment to enhancing healthcare funding and its impact on the overall health system.
When introducing the study in Parliament on Monday, Union Finance Minister Nirmala Sitharaman observed that the percentage of primary healthcare spending has increased dramatically. Primary healthcare spending rose from 51.3% of GHE in FY15 to 55.9% in FY20. Furthermore, from 73.2% in FY15 to 85.5% in FY20, the combined share of primary and secondary care in GHE increased noticeably. The government’s emphasis on bolstering basic healthcare services is reflected in this increase, which makes sure that more funds are allocated to the most critical care levels.
On the other hand, over the same time period, the percentage of private health expenditure that goes toward primary and secondary care has decreased from 83% to 73.7%. According to the poll, this change is caused by an increase in the prevalence of tertiary diseases and a higher use of government services for basic medical needs. This pattern suggests that people are depending more and more on public health services to meet their fundamental medical needs. This could ease financial strain on people and increase access to necessary medical treatment.
Additionally, the Economic Survey notes a notable increase in social security health spending. This expenditure increased from 5.7% of GHE in FY15 to 9.3% in FY20, demonstrating a stronger emphasis on giving poor populations access to financial and health protection. Furthermore, between FY15 and FY20, there was a discernible decrease in out-of-pocket expenditure (OOPE) as a % of THE, suggesting that people are paying less out of their own money for healthcare services. Increased government funding and the introduction of health programs that lower patients’ direct costs are to blame for this decline in OOPE.
The Economic Survey also observes a significant rise in social security health spending. This spending grew from 5.7% of GHE in FY15 to 9.3% in FY20, indicating a greater commitment to providing low-income communities with access to health and financial safety. In addition, there was a noticeable drop in out-of-pocket spending (OOPE) as a percentage of THE between FY15 and FY20, indicating that individuals may be paying less of their own money for healthcare services. This drop in OOPE can be attributed to increased government financing as well as the implementation of health services that reduce patients’ direct costs.
Important health indices have been positively impacted by these financial developments. From 39 per 1,000 live births in 2013 to 28 per 1,000 live births in 2020, the infant mortality rate (IMR) decreased. Similarly, from 167 per lakh live births in 2014 to 97 per lakh live births in 2020, the Maternal Mortality Rate (MMR) had a significant decline. These advancements highlight the value of more money for healthcare and focused health initiatives.
Through initiatives in preventative and promotional healthcare, the Union government is actively striving to guarantee good health and well-being for individuals of all ages. The Economic Survey enumerates several public health initiatives, such as PM Jan Aushadhi Kendras, AMRIT (Affordable Medicines and Reliable Implants for Treatment), and Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY). By lowering patient costs, improving access to necessary medications, and offering inexpensive healthcare services, these programs hope to improve health outcomes nationwide.
SOURCE:
ECONOMIC TIMES
