Centre's health spending triples to Rs 4.14 lakh crore in a decade. Falling out-of-pocket costs signal stronger financial protection for households.Centre's health spending triples to Rs 4.14 lakh crore in a decade. (Representative image) The Centre's health expenditure more than tripled from Rs 1.30 lakh crore in 2013-14 to Rs 4.14 lakh crore in 2023-24, according to the latest National Health Accounts estimates, news agency Press Trust of India reported.During the same period, out-of-pocket expenditure by households as a share of total health spending fell by 21.5 percentage points, from 64.2 per cent to 42.7 per cent.
The National Health Accounts Estimates for India 2023-24 were released by the Union Health Ministry."The simultaneous increase in public healthcare financing and decline in the proportion of spending borne directly by households reflect India's progress towards a more accessible, affordable and financially protective healthcare system," the ministry said in a statement.Out-of-pocket expenditure declined from 43.4 per cent in 2022-23 to 42.7 per cent in 2023-24, showing a continued reduction in the share of healthcare costs paid directly by households, according to the estimates cited by PTI. "The sustained downward trend reflects the expanding role of government-supported healthcare services and financial protection mechanisms. Initiatives aimed at improving access to free and affordable treatment, medicines, diagnostics and hospital services are supporting efforts to reduce dependence on direct household spending," the ministry said.The government's share of total health expenditure increased by 14.9 percentage points over the decade.
Per capita government health expenditure rose nearly threefold, from Rs 1,042 in 2013-14 to Rs 2,959 in 2023-24. Social security expenditure on health also increased, with its share of total health spending rising from 6 per cent in 2013-14 to 11 per cent in 2023-24.
This includes government-funded health insurance schemes such as the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana, state insurance schemes, social health insurance and medical expenses for government employees.The share of private health insurance expenditure in total health spending rose from 3.4 per cent in 2013-14 to 10.2 per cent in 2023-24, the estimates showed.Government expenditure on primary healthcare stood at about Rs 1.53 lakh crore in 2023-24, reflecting an increased focus on primary and community-level healthcare, the ministry told PTI.The ministry said initiatives such as Ayushman Arogya Mandirs, free drugs and diagnostic services, the Pradhan Mantri National Dialysis Programme, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana and AMRIT pharmacies had contributed to efforts to improve access to affordable healthcare. It added that Ayushman Bharat-PMJAY had strengthened financial protection by providing cashless hospitalisation benefits to eligible beneficiaries.The 2023-24 figures are the 11th round of estimates prepared by the National Health Accounts Technical Secretariat, which operates within the National Health Systems Resource Centre under the Ministry of Health and Family Welfare.
They were prepared using the internationally recognised System of Health Accounts 2011 framework.Overall, the estimates show that government health expenditure rose sharply over the decade, while the share of healthcare costs paid directly by households declined and spending through social security and private insurance increased.- Ends(With PTI inputs)