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

New Delhi: 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.

“As per the National Health Policy, 2017, public investment in health is envisioned to reach 2.5% of GDP by 2025. Ministry of Health and Family Welfare (MoHFW) has taken up with States to prioritize allocation to the health sector and enhance their health budgets by at least 10 per cent every year to reach the goal as envisaged,” one of the sources said, reports news agency PTI.

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.

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.

“Out-of-pocket expenditure (OOPE) as a per cent of total health expenditure has decreased to 47.1 per cent in 2019-20 from 62.6 per cent in 2014-15.

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.

According to a PTI report, Further explaining about the ‘Ayushman Bhav’ campaign, one of the sources said, “It’s a comprehensive nationwide healthcare initiative that aims to provide saturation coverage of healthcare services, reaching every village and town in the country. This groundbreaking initiative builds upon the success of the Ayushman Bharat program and signifies a paradigm shift in healthcare services.”

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.

On providing affordable generic medicines under PMBJP, telemedicine and e Sanjeevani they said, “Quality generic medicines are made available at affordable prices to all under Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) in collaboration with the State Governments. Affordable Medicines and Reliable Implants for Treatment (AMRIT) Pharmacy stores have been set up in some hospitals/institutions and under National Telemedicine Service, eSanjeevani provides access to specialized medical healthcare across the country by providing facility for doctor-to-doctor consultation and patient-to-doctor consultation.”