Govt rebuts Lancet report on healthcare spending, says health investment aims to reach 2.5% of GPD by 2025

In response to a Lancet report highlighting concerns over healthcare spending in India, government sources have contested the findings, asserting that investments in the health sector have reached unprecedented levels.

The Lancet report claimed that the Indian government's healthcare expenditure stands at a mere 1.2% of GDP, one of the lowest among G20 nations, with persistently high out-of-pocket expenses for healthcare.

The budget estimates of the Department of Health and Family Welfare have reached Rs 86,175 crore in 2023-24 from Rs 36,948 crore in 2014-15, thereby showing an overall increase of 133.23 per cent during the period, they said.

According to the report by medical journal Lancet, the government spending on health has fallen and now hovers around an “abysmal” 1.2 per cent of gross domestic product, out-of-pocket expenditure on health care remains extremely high, and flagship initiatives on primary health care and universal health coverage have so far “failed” to deliver services to people most in need.

In response, the sources in the government said the Health Ministry is making continuous efforts to increase allocation in health budget.

Further, the 15th Finance Commission has provided Rs 70,051 crore as grants for health through the local governments, the sources added.

As per National Health Accounts estimates for 2019-20, the key achievements in the health sector, that the total health expenditure was Rs 4,83,259 crore in 2014-15, which in 2019-20 has risen to Rs 6,55,822 crore.

However, government health expenditure as a per cent of GDP has increased from 1.13 per cent in 2014-15 to 1.35 per cent in 2019-20, indicating the commitment of the government to increase investments in the health sector.

On out-of-pocket expenditure, they said it has been decreasing.

Moreover, the government highlighted its various flagship initiatives aimed at bolstering healthcare infrastructure and expanding coverage. 

These include the PM-Ayushman Bharat Health Infrastructure Mission, Ayushman Arogya Mandir, Pradhan Mantri Jan Arogya Yojana, and Ayushman Bharat Digital Mission, alongside recent endeavours such as the Ayushman Bhav campaign.

These initiatives aim to provide comprehensive healthcare services across the country, reaching even the remotest areas.

Other notable initiatives are to provide financial and technical support to States/UTs under National Health Mission (NHM), setting up of new AIIMS, upgrading of Government medical colleges under the Pradhan Mantri Swasthya Suraksha Yojna (PMSSY), support to States/UTs for setting up of new medical colleges as well as for increasing UG and PG medical seats, provision of free drugs and free diagnostic facilities at Primary Health Centres (PHC)/ Community Health Centres (CHC) and district hospital level, substantial increase in availability of government ambulances, implementation of Janani Shishu Suraksha Karyakram, Janani Suraksha Yojana, Pradhan Mantri National Dialysis Program, Mobile Medical Units etc, they said.