Health Budget Allocation increases by 85 per cent for 2024-25: MoS Health Informs Lok Sabha

New Delhi: The Minister of State for Health, Shrimati Anupriya Patel, provided a detailed account of health expenditure as a percentage of the Gross Domestic Product (GDP) and outlined the government’s initiatives to address the sector's increasing demands. She emphasized efforts to boost healthcare investments, enhance infrastructure, and improve access to quality healthcare services nationwide.

The government's commitment to health is further reflected in the substantial rise in the health budget allocation. The budget for the Department of Health and Family Welfare (DoHFW) has seen an 85% increase, from Rs. 47,353 crore in 2017-18 to Rs. 87,657 crore in 2024-25.

In response to the vulnerabilities exposed in the healthcare system during COVID-19, the government significantly increased its health spending, focusing not only on pandemic control measures but also on long-term healthcare improvements. Investments were made to expand hospital capacity, purchase medical equipment, and provide greater support for frontline healthcare workers.

He Seeks to know if so, the details thereof and if not, the reasons therefor; whether the Government has taken any steps to increase health spending, especially in light of the COVID-19 pandemic; and

Furthermore, he inquired, if so, the details thereof and if not, the reasons therefor.

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In response to these questions, MoS Health Shrimati Anupriya Patel informed that as per the National Health Accounts Estimates for India, the Government Health Expenditure (GHE) as a percentage of Gross Domestic Product (GDP) has increased from 1.13% in 2014-15 to 1.84% in 2021-22. The GHE as a percentage of GDP for the last three years are given below:

As per the National Health Policy 2017, public investment on health is envisioned to reach 2.5% of GDP by 2025. The Ministry of Health and Family Welfare (MoHFW) has taken up with States to prioritize allocation to health sector and enhance their Health Budgets at least 10% every year. The budget allocation for the Department of Health & Family Welfare (DoHFW) has increased by 85% from Rs. 47,353 crore in 2017-18 (BE) to Rs. 87,657 crore in 2024-25 (BE). Further, the 15th Finance Commission provided Rs. 70,051 crore Grants for health through the local Governments.

The ‘India COVID-19 Emergency Response and Health System Preparedness Package’(ECRP) of Rs. 15,000 crore was approved by the Government in April 2020 wherein States/UTs were provided with required technical and financial assistance for strengthening their healthcare system for management of the COVID-19 Public Health Challenge. In addition, ECRP Phase-II was also approved by the Cabinet with Rs. 23,123 crore (with Rs. 15,000 crore as a Central component & Rs. 8,123 crore as a State component). Moreover, the Central Government also implemented the “National COVID-19 Vaccination Programme” to provide free vaccination to all adult citizens during the FY 2021-22 for an expenditure of about Rs.35,000 crore, stated the Minister

Further, the PM-Ayushman Bharat Health Infrastructure Mission ( PM-ABHIM) was launched as a mission to develop the capacities of primary, secondary, and tertiary health care systems; strengthen existing national institutions and create new institutions to cater to the detection and cure of new and emerging diseases. PM-ABHIM is a Centrally Sponsored Scheme with some Central Sector components with an outlay of Rs. 64,180 crore.