Government spending on healthcare in India has nearly tripled over the last decade, reaching ₹3.85 lakh crore in 2022–23. This aggressive public investment has successfully alleviated the financial burden on citizens by significantly reducing household out-of-pocket expenses for medical treatment, according to the latest National Health Accounts (NHA) estimates released by the Union Health Ministry.
The report highlights a structural shift toward a more affordable and equitable healthcare ecosystem, driven by the following key findings:
1. Massive Surge in Public Funding
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Total Spending: Government health expenditure skyrocketed from ₹1.30 lakh crore in 2013–14 to ₹3.85 lakh crore in 2022–23.
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Per Capita Investment: In per capita terms, public health spending increased nearly 2.7 times, rising from ₹1,042 to ₹2,786 per person.
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Focus on Primary Care: Financial support for grassroots healthcare more than doubled, with government expenditure on primary healthcare jumping from ₹0.5 lakh crore in 2013–14 to ₹1.4 lakh crore in 2022–23.
2. Rising Share in the National Economy
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GDP Share: The share of government health spending in the country’s Gross Domestic Product (GDP) rose from 1.15% in 2013–14 to 1.43% in 2022–23 (standing at 1.48% under the new GDP base-year series).
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The Pandemic Peak: Public spending spiked significantly during the COVID-19 crisis, peaking at 1.84% of the GDP in 2021–22 due to emergency response packages and the nationwide vaccination drive.
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Share in Total Health Expenditure: The government’s contribution to overall health spending in India jumped by roughly 15 percentage points, moving from 28.6% to 43.7% over the decade.
3. Sharp Decline in Out-of-Pocket Burden
Driven by the government’s push toward Universal Health Coverage (UHC), household out-of-pocket expenditure as a share of total health spending plummeted by nearly 21 percentage points—dropping from a staggering 64.2% in 2013–14 to 43.4% in 2022–23. During the height of the pandemic, this financial burden eased even further to 39.4%.
4. Growth in Social Security and Private Insurance
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Social Security Expansion: The share of Social Security Expenditure (SSE)—which includes government-funded insurance like Ayushman Bharat (AB PM-JAY), social health insurance programs, and medical reimbursements for government employees—surged from 6% to 9.9%.
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Private Insurance Growth: Reflecting rising disposable incomes and greater health awareness, the share of private health insurance in total health expenditure also grew significantly, rising from 3.4% to 9.2%.
About the Report: The NHA estimates are meticulously compiled by the National Health Accounts Technical Secretariat under the National Health Systems Resource Centre, utilizing the globally recognized “System of Health Accounts 2011” framework.
