Government Spending on Health Leads to Significant Decrease in Out-of-Pocket Expenditure

The increase in government spending on health from 2014-15 to 2021-22 has led to a notable decrease in out-of-pocket expenditure (OOPE) in India. Government Health Expenditure (GHE) tripled during this period, highlighting the proactive measures taken to tackle the COVID-19 pandemic and ensure financial protection for households.

The increased government spending on health from 2014-15 to 2021-22 has led to a significant decline in out-of-pocket expenditure, according to data revealed on Wednesday. The National Health Account estimates show that Government Health Expenditure (GHE) per capita has tripled from Rs 1,108 to Rs 3,169 over this period.

Between 2019-20 and 2020-21, government health spending saw a 16.6% rise and an unprecedented 37% increase between 2020-21 and 2021-22, demonstrating the government’s proactive role in combating COVID-19. The health ministry emphasized that increased spending reduces financial hardship for households.

Dr. V K Paul from NITI Aayog highlighted that the improved methodology for these estimates has led to better accuracy. He noted that over Rs 1 lakh crore savings from the Ayushman Bharat PMJAY contributed positively. Union Health Secretary Apurva Chandra added that the rise in government health spending reflects the government's commitment to health. The systematic description provided in the NHA report shows continuous efforts to boost public health investments, raising GHE's share in GDP from 1.13% to 1.84% and Social Security Expenditure (SSE) on health from 5.7% to 8.7% over seven years.