Policy Matter

Expenditure on Health Sector

The National Rural Health Mission (NRHM) was launched in April 2005 to provide financial support to States/UTs to sthEALTH-SECTORrengthen their health systems particularly to cater to the healthcare needs of rural areas, which inter-alia include support for:

  • Establishment/up-gradation/renovation of health infrastructure;
  • Engagement of nurses, doctors and specialists on contract basis  to meet deficit in human resources in health sector;
  • making available improved health facilities including free essential medicines in all public health facilities;
  • Selection and training of Accredited Social Health Activists (ASHA);
  • For Mobile Medical Units and Emergency Referral Transport Services, and
  • For initiatives like Janani-Shishu  SurakshaKaryakram(JSSK), RashtriyaBalSwasthyaKaryakram (RBSK) and RashtriyaKishorSwasthyaKaryakram (RKSK).

The budgeted outlays of Government of India for health and family welfare sector have increased from Rs. 10733.56 crores in 2005-06 to Rs. 29653 crores in 2015-16.

As per World Health Statistics 2014 published by World Health Organization, ‘Out of Pocket’ expenditure accounts for 60 percent of total expenditure on health in India in 2011. Public expenditure on health as percentage of total expenditure on health in India in 2011, stands at 30.5%.

As per the 12th Five Year Plan document, total public funding by the Centre and States, plan and non-plan, on core health is envisaged to increase to 1.87 per cent of GDP by the end of the Twelfth Plan. Viewed in the perspective of the broader health sector, the total Government expenditure as a proportion of GDP is envisaged to increase to 2.5 per cent by the end of the Twelfth Plan.

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