A Study on Public Health Care Expenditure in India

Abstract

Good health is both an intrinsic human right and a catalyst for economic development.  Increased Public health expenditure is essential to reduce catastrophic out-of-pocket expenses (OOPE), improve poor health outcomes, build critical infrastructure, and achieve Universal Health Coverage (UHC). India's current public health spending, while increasing, remains low compared to global averages and national targets, creating significant gaps in quality and access.  This paper examines public healthcare expenditure of India and their implications for economic growth.  The study also provides a comprehensive overview of trends in public health expenditure relative to population and Gross Domestic Product (GDP), central state share in public health expenditure, and key health financing indicators. The study is based on secondary data of public expenditure for the year 2010 to 2022 collected from various government publications like Economic survey, National Health Accounts, NITI Aaayog reports, Census data, World Bank database, ministry of health and family welfare etc. Patterns and trends in time series data were analyzed using line graphs. Macroeconomic links with Gross Domestic Product (GDP), per capita public expenditure, and related variables were examined using Compound Annual Growth Rate (CAGR) and correlation analysis. The study found a dramatic increase in public health expenditure and per capita public expenditure on health over the period, as well as a strong positive correlation between public health expenditure and GDP, population, and per capita public expenditure. Although India's public health spending is rising, it remains low compared to global averages and national targets, resulting in significant gaps in quality and access. The study emphasizes the need for collaborative government efforts to increase public healthcare spending, given the low share of government expenditure relative to GDP, the high rate of out-of-pocket expenses, inadequate infrastructure such as doctor shortages, and disparities in access between urban and rural areas.