India’s government health expenditure has nearly tripled over the last decade, rising to ₹4.14 lakh crore in 2023–24 from ₹1.30 lakh crore in 2013–14. According to the National Health Accounts (NHA) estimates released by the Union health ministry, this surge in public investment has led to a significant decrease in the financial burden placed on individual households.
Data shows that the share of total healthcare expenditure borne directly by households—known as out-of-pocket expenditure—fell from 64.2% in 2013–14 to 42.7% in 2023–24. The ministry described this trend as a move toward a more accessible and financially protective healthcare system, noting that per capita public health spending has increased 2.8 times, rising from ₹1,042 to ₹2,959 over the same period.
The government attributed this transformation to a combination of expanded primary healthcare infrastructure and improved insurance coverage. Government-funded insurance programs, such as Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), state schemes, and social health insurance, saw their contribution to total health expenditure rise to 11% in 2023–24, up from 6% a decade prior. Additionally, private health insurance expenditure grew to 10.2% of total health spending, compared to 3.4% in 2013–14.
Authorities also highlighted the impact of specific cost-reduction initiatives, including the Free Drugs and Diagnostics Initiatives, the Pradhan Mantri National Dialysis Programme, and the establishment of Ayushman Arogya Mandirs, which provide preventive care and diagnostics at the community level. Furthermore, price controls implemented by the National Pharmaceutical Pricing Authority and the expansion of AMRIT pharmacies were cited as measures that helped make medical treatments and drugs more affordable for the public.
Key facts
- Government health expenditure rose from ₹1.30 lakh crore in 2013–14 to ₹4.14 lakh crore in 2023–24.
- The household share of health spending dropped by 21.5 percentage points over the decade.
- Private health insurance spending reached ₹97,167 crore in 2023–24.
- Social security health expenditure increased to 11% of total health spending by 2023–24.
- Per capita public health spending grew from ₹1,042 to ₹2,959.
Why it matters
The ministry stated that the combination of increased public investment, financial protection schemes, and the expansion of primary care facilities is expected to provide greater financial security to the public at large. These structural changes are intended to ensure that a larger portion of total healthcare costs is met through government resources rather than private savings.
Source: Livemint, Hindustan Times
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