The Ministry of Health and Family Welfare has released the National Health Accounts (NHA) Estimates for 2022-23, highlighting a significant increase in public spending on healthcare over the past decade. The report shows that government investment in health has risen steadily, while the share of medical expenses borne directly by households has declined considerably.
Prepared by the National Health Accounts Technical Secretariat under the National Health Systems Resource Centre (NHSRC), the report provides a comprehensive picture of healthcare financing in India and tracks the country’s progress towards improving access to affordable healthcare.
Key Highlights
- Government Health Expenditure increased from ₹1.30 lakh crore in 2013-14 to ₹3.85 lakh crore in 2022-23.
- GHE as a share of GDP rose from 1.15% to 1.43%.
- Government’s share in Total Health Expenditure increased from 28.6% to 43.7%.
- Out-of-Pocket Expenditure declined from 64.2% to 43.4%.
- Social Security Expenditure increased from 6% to 9.9%.
- Private health insurance share rose from 3.4% to 9.2%.
- Government spending on primary healthcare increased from ₹0.5 lakh crore to ₹1.4 lakh crore.
- COVID-19-related spending pushed health expenditure to 1.84% of GDP in 2021-22.
Government Health Expenditure Continues to Rise
According to the report, Government Health Expenditure (GHE) increased nearly threefold from ₹1.30 lakh crore in 2013-14 to ₹3.85 lakh crore in 2022-23. The share of GHE in India’s GDP rose from 1.15% to 1.43% during the period. Based on the revised GDP series with 2022-23 as the base year, the ratio stands at 1.48%.
The government’s share in total public expenditure also increased, with GHE as a percentage of General Government Expenditure rising from 3.78% in 2013-14 to 4.89% in 2022-23. On a per capita basis, government spending on healthcare increased from ₹1,042 to ₹2,786, reflecting a nearly 2.7-fold rise over the decade.
The report also notes that expenditure on primary healthcare more than doubled from around ₹0.5 lakh crore in 2013-14 to ₹1.4 lakh crore in 2022-23, indicating continued efforts to strengthen healthcare delivery at the grassroots level.
Also Read: India Crosses 100 Crore Health Records Linked with ABHA Under ABDM
Household Healthcare Burden Declines
A key highlight of the report is the substantial decline in Out-of-Pocket Expenditure (OOPE), which refers to direct healthcare spending by individuals and households. OOPE as a share of Total Health Expenditure (THE) fell from 64.2% in 2013-14 to 43.4% in 2022-23.
At the same time, the share of Government Health Expenditure in Total Health Expenditure increased from 28.6% to 43.7%, reflecting the growing role of public financing in the healthcare sector.
The report also points to rising Social Security Expenditure (SSE) on healthcare. The share of SSE in Total Health Expenditure increased from 6% in 2013-14 to 9.9% in 2022-23. This includes spending on government-funded health insurance schemes such as Ayushman Bharat PM-JAY, social health insurance programmes, and medical reimbursements for government employees.
Private health insurance also expanded significantly during the period, with its share in Total Health Expenditure rising from 3.4% to 9.2%. According to the report, this reflects greater health awareness and improved purchasing power among the population.
COVID-19 Boosted Public Health Spending
The report highlights the impact of the COVID-19 pandemic on healthcare expenditure trends. To manage the public health emergency, the government significantly increased healthcare spending, pushing Government Health Expenditure to 1.84% of GDP in 2021-22.
This additional spending included the Emergency COVID Response Packages (ECRP-I and ECRP-II) and the nationwide COVID-19 vaccination programme. As a result, the share of Out-of-Pocket Expenditure in Total Health Expenditure declined further to 39.4% during the pandemic period.
The decadal trend presented in the report suggests that sustained increases in government health spending have helped reduce the financial burden on households while improving financial protection through public health programmes and insurance schemes.
The decadal trend presented in the report suggests that sustained increases in government health spending have helped reduce the financial burden on households while improving financial protection through public health programmes and insurance schemes.
Source: Ministry of Health and Family Welfare, National Health Systems Resource Centre
