India’s healthcare spending triples to Rs 3.85 lakh crore over the last decade

As per National Health Accounts (NHA) estimates, government health expenditure rose steadily between 2013-14 and 2022-23, while out-of-pocket spending declined significantly

The Ministry of Health and Family Welfare has released the National Health Accounts (NHA) Estimates 2022-23, highlighting a significant rise in India’s healthcare spending over the last decade 

According to the report, India’s health expenditure has increased nearly threefold to Rs. 3.85 lakh crore over the past ten years. 

The NHA 2022-23 is the tenth report prepared by the National Health Accounts Technical Secretariat (NHATS) under the National Health Systems Resource Centre using the System of Health Accounts (2011) framework.

The report shows that Government Health Expenditure (GHE) as a share of the country’s Gross Domestic Product (GDP) increased from 1.15 percent in 2013-14 to 1.43 percent in 2022-23. As per the revised GDP series with base year 2022-23, the GHE-to-GDP ratio stands at 1.48 percent.

Government spending on primary healthcare has more than doubled during the period, rising from Rs. 0.5 lakh crore in 2013-14 to Rs. 1.4 lakh crore in 2022-23. 

The share of GHE in General Government Expenditure (GGE) also rose from 3.78 percent to 4.89 percent, reflecting the increasing prioritisation of healthcare in public expenditure.

In per capita terms, government healthcare expenditure increased nearly 2.7 times, from Rs. 1,042 in 2013-14 to Rs. 2,786 in 2022-23.

The report also highlighted a significant reduction in Out-of-Pocket Expenditure (OOPE) by households. 

OOPE as a share of Total Health Expenditure (THE) declined sharply from 64.2 percent in 2013-14 to 43.4 percent in 2022-23, indicating improved financial protection for citizens through public healthcare schemes and insurance coverage.