Centre’s health expenditure fell from 1.35% of GDP in 2017-18 to 1.28% in 2018-19

The government’s health expenditure as a percentage of the GDP slumped from 1.35 in 2017-18 to 1.28 in the next year, said data released on Monday (September 12).

According to the latest national health estimates, the central government’s share in the health expenses fell to 34.3 per cent in 2018-19, from 40.8 per cent in the previous year, while the same for the states rose from 59.2 per cent to 65.7 per cent during the same period.

In the same period, the out-of-pocket expenditure as a percentage of the total health expenditure also fell from 48.8 to 48.2 per cent.

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However, when compared with the figures of 2013-14, the out-of-pocket expenditure on health decreased substantially by 16 percentage points from 64.2 per cent.

Out-of-pocket expenditures are expenditures directly made by households at the point of receiving healthcare. This indicates the extent of financial protection available for households towards healthcare payments.

The total health expenditure slumped to 3.2 per cent of the GDP in 2018-19, the last year for which the data is available, from 3.3 per cent in the preceding year and 4 per cent in 2013-14.

The total health expenditure is calculated by factoring in the current and capital expenditures incurred by government and private sources, including external funds. As a percentage of the GDP, it indicates the health spending relative to a country’s economic development.

The total health expenditure per capita, which indicates the health expenditure per person in the country, at current prices, however, increased to ₹4,470 in 2018-19, from ₹4,297 in the previous year and from ₹3,638 in 2013-14.

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The social safety net for healthcare expenditure increased from 6 per cent in 2013-14 to 9.6 per cent in 2018-2019.

(With inputs from agencies)