India's Health Budget Sees 85% Rise, Govt Health Spending Reaches 1.84% of GDP

As per the National Health Accounts Estimates for India, Government Health Expenditure (GHE) as a percentage of GDP increased from 1.13% in 2014-15 to 1.84% in 2021-22.

The Minister of State for Health, Anupriya Patel, presented a comprehensive overview of India’s health expenditure as a percentage of the Gross Domestic Product (GDP) while highlighting initiatives aimed at addressing the growing demands in the healthcare sector.

Patel emphasized the government’s commitment to boosting healthcare investments, enhancing infrastructure, and improving access to quality healthcare services across the nation.

The minister underlined the substantial rise in health budget allocations over recent years.

The Department of Health and Family Welfare (DoHFW) saw an 85% increase in its budget, which increased from INR 47,353 Cr in 2017-18 to INR 87,657 Cr in 2024-25.

This surge in spending reflects the government’s focus on addressing vulnerabilities exposed during the COVID-19 pandemic.

Investments were directed towards expanding hospital capacities, procuring advanced medical equipment, and providing greater support for frontline healthcare workers.

Responding to parliamentary questions raised by Shri Ramasahayam Raghuram Reddy, Shrimati Patel provided detailed insights into the government's health spending trends.

As per the National Health Accounts Estimates for India, Government Health Expenditure (GHE) as a percentage of GDP increased from 1.13% in 2014-15 to 1.84% in 2021-22.

The National Health Policy 2017 envisions raising public health investment to 2.5% of GDP by 2025.

To achieve this target, the Ministry of Health and Family Welfare (MoHFW) has urged states to prioritize health sector allocations and enhance their annual health budgets by at least 10%.

COVID-19 Emergency Measures

During the pandemic, the government launched the India COVID-19 Emergency Response and Health System Preparedness Package (ECRP).

The first phase of this program, approved in April 2020 with an outlay of INR 15,000 Cr, provided states and union territories with technical and financial support to strengthen healthcare systems.

ECRP Phase-II, sanctioned with a total budget of INR 23,123 Cr,(including INR 15,000 crore from the Centre), continued these efforts.

Additionally, the government implemented the National COVID-19 Vaccination Programme in FY 2021-22, offering free vaccinations to all adult citizens at a cost of approximately INR 35,000 Cr.

PM-Ayushman Bharat Health Infrastructure Mission

As part of its broader healthcare strategy, the government launched the PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).

This centrally sponsored scheme, with an outlay of INR 64,180 Cr,, aims to develop primary, secondary, and tertiary healthcare capacities, strengthen national institutions, and establish new facilities to combat emerging diseases.

The program’s objectives include equipping healthcare systems to handle future health emergencies and ensuring universal access to quality healthcare services.

The 15th Finance Commission has also contributed significantly to India’s healthcare funding, providing INR 70,051 Cr as grants to local governments for health-related initiatives.

The government’s increasing health expenditure and targeted programs underscore its commitment to building a robust healthcare system.

By focusing on expanding infrastructure, leveraging technological advancements, and improving healthcare delivery mechanisms, India aims to enhance access to quality medical services while addressing both current and future challenges.

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