India has made substantial progress towards ensuring affordable healthcare, with Government Health Expenditure more than tripling and households’ Out-of-Pocket Expenditure (OOPE) declining significantly over the past decade. Government Health Expenditure increased from nearly one lakh 30 thousand crore rupees in 2013-14 to over four lakh 14 thousand crore rupees in 2023-24. During the decade, the government’s share in Total Health Expenditure (THE) increased by 14.9 percentage points, reflecting a rise of nearly 52 per cent. This was stated in the National Health Accounts (NHA) Estimates for 2023-24, released by the Ministry of Health and Family Welfare today.
Meanwhile, the share of Out-of-Pocket Expenditure in Total Health Expenditure declined from 64.2 per cent to 42.7 per cent during the same period, registering a fall of 21.5 percentage points. The downward trend continued in the latest year, with OOPE declining from 43.4 per cent in 2022-23 to 42.7 per cent in 2023-24. According to the NHA estimates, per capita Government Health Expenditure also increased nearly threefold, from one thousand 42 rupees to two thousand 959 rupees. Public investment in primary healthcare reached one lakh 53 thousand crore rupees.
Further strengthening financial protection, the share of Social Security Expenditure on health nearly doubled from six per cent to 11 per cent of total health spending. The share of private health insurance also increased from 3.4 per cent to 10.2 per cent over the ten-year period, indicating wider health insurance coverage across the country.
The Health Ministry said flagship government initiatives, including Ayushman Bharat, Ayushman Arogya Mandirs, Jan Aushadhi Kendras and free drugs and diagnostics services, have played a significant role in bringing the country closer to Universal Health Coverage.
