NEW DELHI: Total health expenditure (THE) of the government was 3.2% of the GDP in 2018, the lowest since 2004-05.
However, the per capita spending of Rs 4,470 has been the highest, according to the 2022 National Health Accounts Estimates (NHAE) report, which was released on Monday. The report covers health sector expenditure patterns till 2018-19.
A comparative analysis shows that the as a percentage of the GDP was 4.2% in 2004-05, the highest in over a decade.
It has been steadily declining since then, reaching 3.9% in 2014-15 and 3.8% in the following two years. It shrank further to 3.3% in 2017-8 and 3.2% a year later.
At the same time, the per capita spending at current prices increased from Rs 1,201 in 2004-05 to Rs 4,470 in 2018-19.
The estimates also show that out-of-pocket expenses borne directly by the patients have been steadily declining from 69.4% in 2004-05 to 48.2% in 2018-19. But this slide is minuscule compared to the previous year when it stood at 48.8%.
The household health expenditure, which includes insurance, continues to be 54.3% of THE.
“Household’s Out of Pocket Expenditure on health (OPPE) is Rs 2,87,573 crore (48.21% of THE, 1.52% of GDP, Rs 2,155 per capita). Private Health Insurance expenditure is Rs 39,201 crores (6.57% of THE).”
The estimates also show that private hospitals make up for most of the current health expenditure (CHE), with Rs 1,55,013 crore (28.69% of CHE) as compared to Rs 93,689 crores (17.34%) in government hospitals.
India’s THE in 2018-19 is estimated to be Rs 5,96,440 crore (3.16% of GDP and Rs 4,470 per capita). Of this, government spending was Rs 2,42,219 crore, which is 40.61% of THE, 1.28% of GDP, and Rs 1,815 per capita.
This amounts to about 4.81% of general government expenditure in 2018-19. Besides, the government-financed health insurance expenditure increased by 167% since 2013-14.