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India’s health spending triples to Rs 4.14L cr

New Delhi: The Centre’s health expenditure more than tripled to Rs 4.14 lakh crore in 2023-24 from Rs 1.30 lakh crore in 2013-14, while the share of out-of-pocket spending by households dropped by 21.5 percentage points in the same period, the latest National Health Accounts estimates showed. The National Health Accounts (NHA) Estimates for India 2023-24, released by the Union Health Ministry, showed that out-of-pocket expenditure (OOPE) as a share of total health expenditure fell from 64.2 per cent in 2013-14 to 42.7 per cent in 2023-24, highlighting a significant transformation in the country’s healthcare financing landscape. Independent media survives because of people like you. Join us in strengthening free journalism & enjoy exclusive subscription benefits!

“Between 2013-14 and 2023-24, government health expenditure increased from approximately Rs 1.30 lakh crore to Rs 4.14 lakh crore. “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 health ministry said in a statement.

According to the estimates, the OOPE declined from 43.4 per cent in 2022-23 to 42.7 per cent in 2023-24, indicating a continued reduction in the proportion of healthcare costs directly borne by households.

“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 in total health expenditure also increased by 14.9 percentage points over the decade, the estimates showed, while per capita government health expenditure rose from Rs 1,042 in 2013-14 to Rs 2,959 in 2023-24, an increase of nearly three times.