Synopsis
In the recent Economic Survey, Finance Minister Nirmala Sitharaman announced that health expenditure in India has escalated to Rs 6.1 lakh crore in FY25, reflecting a significant growth trajectory driven by government initiatives and a focus on enhancing public health infrastructure.Key Takeaways
- Health expenditure reached Rs 6.1 lakh crore in FY25.
- Growth at CAGR of 18% since FY21.
- Government health expenditure increased from 29% to 48%.
- Out-of-pocket expenses decreased from 62.6% to 39.4%.
- Capital expenditure share rose from 6.3% to 12.7%.
New Delhi, Jan 31 (NationPress) The Economic Survey presented by Finance Minister Nirmala Sitharaman in Parliament on Friday highlighted that health expenditure in the nation surged to Rs 6.1 lakh crore in FY25.
This growth was recorded at a CAGR of 18 percent, compared to Rs 3.2 lakh crore in FY21.
According to the Economic Survey, "Health is an essential element of human capital and a significant asset for a thriving and stable economy. It enhances productivity, decreases healthcare demands, increases life expectancy, and fosters social development."
The report emphasized the importance of health as "India is evolving into an economic powerhouse fueled by its youthful demographic."
It noted that government initiatives such as preventive strategies, universal access to quality healthcare, improved public health infrastructure, and advancements in medical education have collectively made healthcare in India increasingly accessible and affordable.
The Survey referenced the latest National Health Accounts, illustrating that Total Health Expenditure (THE) has been on an upward trajectory since FY19.
In FY22, it was projected to reach Rs 9,04,461 crore (3.8 percent of GDP and Rs 6,602 per capita at current prices).
The share of capital expenditure within THE rose from 6.3 percent in FY16 to 12.7 percent in FY22.
"This is a promising indication as it will result in improved and broader health infrastructure," stated the Survey.
The report also pointed out that increased government spending on health significantly alleviates financial burdens on households.
Between FY15 and FY22, the share of Government health expenditures (GHE) increased from 29.0 percent to 48.0 percent.
Notably, the proportion of out-of-pocket expenditure (OOPE) dropped from 62.6 percent to 39.4 percent during the same timeframe.
