In the aftermath of the Covid-19 outbreak, a major budgetary increase for the healthcare sector pushed India’s health expenditure to 2.1 percent of GDP for the first time, putting it closer to the government’s national goal.
According to the Economic Survey 2021-22, the central and state governments’ budgeted expenditure on the health sector in the pandemic year reached 2.1 percent of GDP, up from 1.3 percent the previous fiscal year.
This is within striking distance of the government’s goal of 2.5 percent of GDP in health spending by 2025, as outlined in the National Health Policy, 2017.
“Investments in health-care systems’ capacity to recognize and respond to public-health threats, as well as solid primary-care delivery systems, will influence the future trajectory of public-health crises like the Covid-19 outbreak.” According to Oommen John, a senior public research fellow at the George Institute for Global Health, “the upcoming budget outlays into health infrastructure will be a monument to this influence.”
After the Covid-19 epidemic, India’s health spending increased by about 73%, from Rs 2.73 lakh crore in 2019-20 (pre-Covid19) to Rs 4.72 lakh crore in 2021-22. This includes the Rs 35,000 crore earmarked by the government for the Covid-19 vaccine program.
In addition to the National Health Mission, the government announced the Ayushman Bharat Health Infrastructure Mission, a new centrally sponsored scheme with an outlay of about Rs 64,180 crore over the next five years to strengthen existing national institutions and create new institutions to cater to the detection and cure of new and emerging diseases.
Experts in public health believe that the Union Budget 2022-23 will continue to offer much-needed cash to the health sector, which has been without it for a long period. “If there are any lessons to be learned from the past two years of the epidemic, it is that interim measures like travel restrictions and school closures are stopgap measures until long-term solutions for health-system resilience are adopted,” John noted.
In India 2020, what proportion of GDP is spent on healthcare?
Between 2008-09 and 2019-20, India’s public health expenditure (the sum of central and state spending) has stayed stable at 1.2 percent to 1.6 percent of GDP. In comparison to other countries such as China (3.2%), the United States (8.5%), and Germany (9.5%), this expenditure is comparatively low (9.4 percent ).
In 2019, what percentage of India’s GDP is spent on healthcare?
The real allocation and spending for DoHFW has increased over the last ten years, according to data. In 2010-11, the BE was Rs. 23.5 thousand crores, while in 2019-20, the BE for DoHFW was Rs. 62.65 crores, about three times higher.
The amount of money spent went from Rs. 22.76 crores in 2010-11 to Rs. 62.39 crores in 2019-20. However, rather than a bigger share of allocation for health or the DoHFW, this rise is primarily due to an overall increase in total budget expenditure. DoHFW’s actual expenditures accounted for 1.9 percent of the overall actual expenditures of the entire union budget in 2010-11, and only marginally grew to roughly 2.3 percent in 2019-20.
Apart from DoHFW, MoHFW spends money on Health Research and other independent entities.
Around Rs. 675 crores were spent on health research in 2010-11. For the 2019-20 fiscal year, this figure has risen to Rs. 1.86 lakh crores.
State governments spend on public health in addition to the federal government because ‘Public Health’ is a state topic.
According to the Economic Survey of India 2020-21, both the center and the states spent roughly Rs. 2.66 lakh crores on health in the fiscal year 2018-19. This is referred to as overall government spending (both Centre & States).
On the other hand, at the start of the decade, in 2010-11, total government spending was Rs. 1.01 lakh crores. In comparison to 2010-11, this is an almost threefold increase in overall government spending on health in 2018-19. However, as DoHFW has remarked, the increase in expenditures is related to the overall development of the economy and budget size, not necessarily owing to an increase in the proportion of health spending.
When total health spending is evaluated as a percentage of GDP, this becomes much clearer. Overall health spending accounted for 1.3 percent of GDP in 2010-11. Since then, overall health spending has fluctuated between 1.2 percent and 1.3 percent in the years leading up to 2016-17. In 2016-17, spending grew to 1.4 percent of GDP, and it stayed stable over the next three years. The share of overall health spending in the RE for 2019-20 and BE for 2020-21 is 1.5 percent and 1.8 percent of GDP, respectively. The rise in 2020-21 is due to more spending resulting from the epidemic. It remains to be seen whether the increased spending would continue in the following years.
What percentage of GDP will healthcare consume in 2020?
In 2020, health-care spending in the United States increased by 9.7% to $4.1 trillion, or $12,530 per person. Health spending contributed for 19.7 percent of the nation’s Gross Domestic Product.
What is India’s health-care budget?
According to NHA estimates, government health expenditure as a percentage of GDP increased to 1.3 percent in 2017-18, up from 1.20 percent the previous fiscal year and 1.15 percent in 2013-14. However, it is still well below the 2.5 percent of GDP target set out in the National Health Policy of 2017.
What percentage of GDP is spent on health?
In 2017, the United Kingdom spent 2,989 per person on healthcare, which was close to the OECD’s median of 2,913 per person.
However, out of the G7 group of big, established countries, the UK had the second-lowest healthcare spending per person, with France (3,737), Germany (4,432), and the United States (7,736) spending the most.
Healthcare spending in the UK declined from 9.8% in 2013 to 9.6% in 2017, whereas healthcare spending in four of the remaining six G7 countries increased.
The NHS-based health system in the United Kingdom contributes to the UK having one of the highest percentages of publicly funded healthcare (79%) in the OECD.
The UK spent 560 per person on health-related long-term care in 2017, which was less than any other northern or western European countries but comparable to France (569) and Canada (556).
In 1980, what percentage of India’s GDP was spent on healthcare?
“The biggest source of concern for patients is out-of-pocket expenses. As a result, a large number of people fall into the below-poverty-line (BPL) category. Medicines account for over 70% of out-of-pocket spending. This is something that needs to be addressed “Rajesh Kumar, head of the Post Graduate Institute of Medical Education and Research’s (PGIMER) Chandigarh’s department of community medicine and school of public health.
The decrease in the government’s budgetary support for healthcare has resulted in an increase in out-of-pocket spending.
“Public health spending in India had risen to 1.5 percent of GDP by the end of the 1980s. Since then, public health spending has been on the decline, reaching barely 0.6 percent of GDP in the 1990s. Since then, it has risen to 1.2 percent, but still falls short of the 2.5 percent objective set for the 12th five-year plan (2012-17) “Ravi Duggal, a health economist and country coordinator for the non-profit International Budget Partnership, said: “The general public’s trust in public health institutions was eroded as a result of this underfunding. Doctors and nurses have also deserted the public health system, leaving large gaps in primary health care and public hospitals “Added he.
The rising burden of communicable and non-communicable diseases is also a problem. While diarrhoea, respiratory infections, and pre-term birth difficulties continue to plague India, lifestyle diseases like heart disease, stroke, lung disease, and diabetes are now the main causes of death. According to the WHO, noncommunicable diseases like cardiovascular disease, cancer, chronic respiratory disease, and diabetes account for roughly 60% of all deaths in India.
According to a 2014 research from the World Economic Forum and Harvard School of Public Health, these lifestyle disorders account for nearly 40% of all hospital admissions and roughly 35% of all reported outpatient visits. According to the survey, the chance of dying from one of the four primary non-communicable illnesses during one’s most productive yearsbetween 30 and 70is a startling 26 percent.
In 2021, how much will India spend on healthcare?
Budget 2021 announced a 137 percent increase in healthcare spending to fill some of the gaps. In India, healthcare accounted for about 1.8 percent of GDP.
What is India’s GDP spent on?
India spent roughly 0.65% of its GDP on research & development in 2018-19. The private sector provides less than 40% of total research and development spending.
Who is the biggest spender on healthcare?
When it comes to health care, the United States is the most expensive country in the planet. Total health spending in the United States is expected to exceed four trillion dollars by 2020. By 2025, expenditure as a proportion of GDP is expected to rise to 19 percent.