Government Health Expenditure Rises to 1.84% of GDP Amid Significant Savings From Ayushman Bharat PMJAY

The National Health Account estimates reveal an increase in government health expenditure from 1.13% in 2014-15 to 1.84% in 2021-22. Out-of-pocket expenditure has dropped significantly, demonstrating positive strides towards financial protection and universal health coverage.

The latest National Health Account (NHA) estimates for India, covering 2020-21 and 2021-22, indicate a substantial rise in the share of government health expenditure within the country's total GDP. The percentage has grown from 1.13% in 2014-15 to 1.84% in 2021-22.

Correspondingly, government health expenditure's proportion of the total health expenditure has surged from 29.0% to 48.0% over the same period. Per capita government spending on healthcare has tripled, marking a significant financial commitment by the state.

Dr. V K Paul, Member (Health) of the NITI Aayog, pointed out a notable decrease in out-of-pocket health costs—from 64.2% in 2013-14 to 39.4% in 2021-22. This reduction signifies a positive development, largely attributed to several government schemes such as Ayushman Bharat PMJAY, which has saved more than Rs 1 lakh crore, and the Free Dialysis scheme, which has benefited 25 lakh people since its 2015-16 inception.

Union Health Secretary Apurva Chandra emphasized the government's increased health expenditure and its positive impact in reducing out-of-pocket spending. These strides underscore the government's commitment to financial protection and achieving Universal Health Coverage for all citizens.