Why in news?
The Union Ministry of Health and Family Welfare released the National Health Accounts (NHA) Estimates for 2022‑23. The report tracks how much the country spends on healthcare and shows a steady increase in government expenditure relative to gross domestic product (GDP) and a decline in out‑of‑pocket spending by households.
Background
NHA is a globally accepted framework for measuring resources devoted to health. India’s first NHA report was published in 2017‑18 with retrospective estimates going back to 2013‑14. The accounts capture spending by central and state governments, households, insurance providers and donors. Regular publication helps policymakers evaluate progress toward universal health coverage and adjust budget priorities.
Key findings of the 2022–23 estimates
- Rising public investment: Government health expenditure increased to around 1.43 percent of GDP in 2022‑23, up from 1.15 percent in 2013‑14. Using the new GDP series (base year 2022‑23), the ratio is 1.48 percent.
- Share of total spending: The government’s share of total health expenditure rose from 28.6 percent to 43.7 percent over the past decade, reflecting greater public financing of health services.
- Per‑capita spending: Government health expenditure per person increased from ₹1,042 in 2013‑14 to about ₹2,786 in 2022‑23, a nearly 2.7‑fold rise. This indicates more resources are being made available for each citizen’s healthcare.
- Reduced out‑of‑pocket expenses: Households’ share of health spending fell to 39.4 percent as government programmes covered a larger portion of costs. During the COVID‑19 pandemic, public spending surged to 1.84 percent of GDP in 2021‑22 for treatment and vaccination, temporarily lowering personal expenses.
- Health in government budgets: The share of health in overall government expenditure rose from 3.78 percent in 2013‑14 to 4.89 percent in 2022‑23, indicating greater priority for the sector.
Implications
- Moving toward universal health coverage: Increased public financing helps reduce catastrophic health spending and brings the country closer to the goal of affordable healthcare for all.
- Focus on primary care: Higher budgets enable expansion of primary health centres, insurance schemes such as Ayushman Bharat and immunisation programmes.
- Need for efficiency: As spending rises, attention must be paid to quality of services, timely procurement of medicines and effective monitoring to ensure funds translate into better health outcomes.
Conclusion
The latest NHA figures underscore India’s commitment to scaling up public health expenditure. Continued investment, coupled with reforms in service delivery and financial risk protection, can reduce the burden of disease and improve the well‑being of citizens.