Govt targets health expenditure at 2.5% of GDP by 2025

As per the union government, an increase in economic growth makes available increased resources for funding the health sector. During the year 2017-18, Rs 50,592.63 Crore was allocated for healthcare expenditure in India which is higher than the previous fiscal years

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New Delhi: As per Economic Survey 2016-17 brought out by Ministry of Finance, expenditure by Government (Central and State Governments combined) on health as a percentage of Gross Domestic Product (GDP) for last three years has increased by 0.3% in last three years. During 2014-15, it was 1.1% and in 2015-16, it was 1.3% (RE). During 2016-17, it was at 1.4 % (BE).

The funds allocated to Ministry of Health and Family Welfare and Ministry of AYUSH, Government of India, for last three years and current year have also witnessed increase. During the 2014-15, the allocated funds stood at Rs 39,237.82 Crore. Further, in 2015-16, it was Rs 33,282.17 Crore, in 2016-17, the amount was Rs 39,532.55 Crore. During 2017-18, the funds allocated for healthcare stand at Rs 50,592.63 Crore.

The National Health Policy 2017 proposes raising public health expenditure to 2.5% of the GDP in a time bound manner by 2025.

The allocation of funds for health sector is based, inter-alia, on the availability of resources and competing claims on these resources. An increase in economic growth makes available increased resources for funding the health sector. In addition to this, availability of overall resources, past utilization, requirements and absorptive capacity inter-alia guide the allocations to the health sector. This was stated by the Minister of State (Health and Family Welfare), Mrs Anupriya Patel while replying to specific questions related to the shortage of funds in healthcare on 4th August in the Parliament.

As per Mrs Anupriya Patel, the National Health Policy 2017 proposes raising public health expenditure to 2.5% of the GDP in a time bound manner by 2025.