India's Health Spending Triples in a Decade as Household Costs Fall

The central government's health spending grew more than three times to reach four lakh fourteen thousand crore rupees in the financial year 2023-24, rising sharply from one lakh thirty thousand crore rupees in 2013-14.

Spending and Costs

Data from the latest National Health Accounts estimates show that out-of-pocket spending by households dropped by twenty-one point five percentage points over this ten-year period. The share of direct household spending fell from sixty-four point two per cent in 2013-14 down to forty-two point seven per cent in 2023-24. Between the 2022-23 and 2023-24 periods alone, this out-of-pocket share went down from forty-three point four per cent to forty-two point seven per cent. Per capita government health spending also went up nearly three times, moving from one thousand forty-two rupees to two thousand nine-hundred fifty-nine rupees.

Insurance and Schemes

At the same time, social security spending on health doubled its share from six per cent to eleven per cent of total health expenditure. Private health insurance also grew, seeing its share rise from three point four per cent to ten.two per cent. The government spent around one lakh fifty-three thousand crore rupees on primary healthcare alone in 2023-24. Officials stated that programs like Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana, Ayushman Arogya Mandirs, Janaushadhi Pariyojana, and free drug initiatives helped drive these changes.

Context

These estimates are the eleventh round prepared by the National Health Accounts Technical Secretariat using a globally recognized framework. Public health experts track these numbers to measure how well citizens are protected from high medical bills when they fall sick.