According to the Union Health Ministry’s National Health Accounts (NHA) estimates released on Tuesday, with the government share increased sharply real per capita health expenditure in India in 2019-20 was the highest since 2004-05
The NHA provides a systemic account of financial flows in the Indian health system. The contribution of the government and households to health expenditure was 41.4% and 47.1% in 2019–20, respectively, the highest and lowest of the two in the NHA series.
Union Health Minister Rajesh Bhushan says “One of the significant parts is that the percentage of health spending spent by the government has increased significantly. In per capita terms in 2014–15, the government spent nearly ₹1,100 per capita and in 2019–20 it increased to 2014, almost double. In percentage terms, it was 1.13% of GDP earlier and in 2019-20 it was 1.35% of GDP”.
According to NHA estimates, India’s total health care bill in 2019–20 was ₹655,800 million. Trends in total health care bills at current prices can be misleading. This is because the country’s overall health care bill can also increase just because of population growth.
health expenditure in India adjusted for both population and inflation
Expenditure per capita in constant prices is adjusted for both population and inflation. This is ₹202 crore or 6.1% more than in 2018–19 and India’s highest expenditure on health in any year for which NHA estimates are available. Before 2019–20, India spent the most in 2016–17: ₹3,503.
Household PPE expenditure, on the other hand, rose by ₹58 to ₹1,656 per capita. That’s the third-lowest in an NHA streak since 2013-14, but the highest in three years since 2017-18. The trend since 2017-18 is important because per capita PPE spending fell dramatically that year.
NHA estimates up to 2016–17 were based on data from the 2014 NSO survey on PPE expenditure. Certainly, this year too there was a small change in the methodology of estimating PPE expenses. PPE expenditure on sterilization was estimated using data from the National Family Health Survey (NFHS) conducted in 2019–21.
While actual per capita PPE expenditure in 2019-20 was the highest since 2017-18, its contribution to India’s total health expenditure declined from 48.2% in 2018-19 to 47.1% in 2019-20. which is the lowest in the NHA series. In contrast, the total government contribution to health expenditure rose to the highest level: 41.4%.
“The nation is moving towards increased spending on public health, both at the central and state levels. In fact, the country is also moving towards effective implementation of universal health insurance without causing financial hardship to its people,” said VK Paul, Member (Health), Niti Aayog.
Written by: Vaishali verma
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