Health Care Spending

Health is a State subject under the Indian Constitution, making States/UTs primarily responsible for healthcare expenditure.

Growth in Healthcare Spending

  • States/UTs : Healthcare allocation rose from ₹2.3 lakh crore (2019-20) to ₹5 lakh crore (2024-25), with a CAGR of 16.8% .
  • Central Government : Allocation grew from ₹62,397 crore to ₹87,656 crore, with a CAGR of 7% .
  • State share in total healthcare expenditure increased from 79% (2019-20) to 85.2% (2024-25) .
Health Care Spending

State-wise Variations

  • High spenders (2023-24) : Bihar (3.4% of GSDP), Odisha (3%), Chhattisgarh (3%).
  • Low spenders : Tamil Nadu, Karnataka, Punjab (0.9% of GSDP).
  • FY25 allocations:
    • Increased : Odisha (+26%), Karnataka (+19.3%), Rajasthan (+17.3%).
    • Decreased : Bihar (-37.4%), Maharashtra (-26.2%), Uttarakhand (-15.3%).

Challenges Highlighted

  • Inadequate health security despite rising expenditure due to:
    • Low public health spending (24.66% of total healthcare expenditure).
    • High out-of-pocket expenditure and rising costs.
  • Political dynamics : Populist schemes and freebies divert funds from healthcare in some States.
Health Care Spending

Global Health Journal Findings

  • India’s government healthcare spending is lower than countries with similar per capita GDP.
  • Administrative and political factors hinder effective health financing.
Health Care Spending

Practice Questions for Mains

  • Q: Evaluate the role of political and administrative structures in shaping India’s healthcare policies.