Lok Sabha Question No. 270 (STARRED), answered on 2024-08-09
Subject: Budget for Health Infrastructure
Ministry: HEALTH AND FAMILY WELFARE
Asked by: Shri Ananta Nayak

## GOVERNMENT OFINDIA MINISTRY OF HEALTH AND FAMILY WELFARE DEPARTMENTOFHEALTH AND FAMILYWELFARE

## LOKSABHA STARRED QUESTION NO. 270 TO BE ANSWERED ON THE 9 TH AUGUST, 2024

## BUDGET FOR HEALTH INFRASTRUCTURE

## *270 SHRI ANANTA NAYAK:

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

- (a) whether it is true that India has the lowest health budget compared to other countries of the world and if so, the details thereof;
- (b) whether Indian Medical Association (IMA) has requested the Government for increasing the health budget to strengthen the health infrastructure in the country;
- (c) if so, the details thereof and the response of the Government thereto;
- (d) whether the Government is aware that low health budget is putting more financial burden on pockets of patients, particularly from poor background and if so, the details thereof; and
- (e) whether the Government has made any road map to increase the health budget by 5 percent of GDP by year 2030 and if so, the details thereof?

## ANSWER THE MINISTER OF HEALTH AND FAMILY WELFARE (SHRI JAGAT PRAKASH NADDA)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 270 FOR 9 TH AUGUST, 2024

(a) As per the National Health Policy, 2017, public investment in health is envisioned to reach 2.5% of GDP by 2025. Government initiatives in this direction is evident from the National Health Accounts Estimates in India, where there has been significant increase in Government spending on health as percentage of Total Health Expenditure (THE), which was 29.0% in 2014-15 and 41.4% in 2019-20. Correspondingly, Government Health Expenditure (GHE) as percentage of GDP has increased from 1.13% in 2014-15 to 1.35% in 2019-20. Further as per Economic Survey 2023-24, the Health Expenditure as percentage of GDP has increased from 1.4% in 2017-18 to 1.9% in 2023-24(BE).

The budget allocation of Ministry of Health and Family Welfare (Department of Health & Family Welfare & Department of Health Research) and Ministry of AYUSH are given as under:

(Rs.in crore)

| Allocation (BE)                       |   2020-21 |   2021-22 |   2022-23 |   2023-24 |   2024-25 |
|---------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Department of Health & Family Welfare |     65012 |     71269 |     83000 |     86175 |     87657 |
| Department of Health Research         |      2100 |      2663 |      3201 |      2980 |      3002 |
| Ministry of AYUSH                     |      2122 |      2970 |      3050 |      3648 |      3712 |
| Total                                 |     69234 |     76902 |     89251 |     92803 |     94371 |

Further, the 15 th Finance Commission has also provided Rs. 70,051 crore Grants for health through the Local Government.

(b) & (c) Allocation of budget is linked to, inter-alia, fiscal health of the Government and capacity of the State Governments to utilize the resources.

(d) As per available National Health Accounts Estimates, the Out of Pocket Expenditure (OOPE) has been continuously declining from 62.6% in 2014-15 to 47.1 % in 2019-20. For providing the affordable healthcare to people, the Government has launched four mission mode projects, namely PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), Ayushman Arogya Mandir (erstwhile ABHWCs), Pradhan Mantri Jan Arogya Yojana (PMJAY) and Ayushman Bharat Digital Mission (ABDM). Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana (AB PM-JAY) aims to provide health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to approximately 55 Crore beneficiaries corresponding to 12.34 Crore families constituting the bottom 40% of India's population. States/UTs implementing AB PM-JAY have further expanded the beneficiary base, at their own cost. Around 7.37 crore hospital admissions worth over one lakh crore have been authorized under the scheme.

Other notable initiatives are National Health Mission (NHM), setting up of new AIIMS, upgrading of Government medical colleges under the Pradhan Mantri Swasthya Suraksha Yojna (PMSSY), support to States/UTs for setting up of new medical colleges as well as for increasing UG and PG medical seats. Free Drugs Service Initiative and Free Diagnostic Service Initiative under National Health Mission have been rolled out to ensure the availability of essential drugs and diagnostic facilities and reduce the Out of Pocket Expenditure (OOPE) of the patients visiting public health facilities.

Besides, quality generic medicines are made available at affordable prices to all under Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) in collaboration with the State Governments. As on 30.6.2024, 12616 Janaushadhi Kendras are functional across the country. Product basket of PMBJP comprises 2047 drugs and 300 surgical items.

(e) As per the National Health Policy, 2017, public investment in health is envisioned to reach 2.5% of GDP by 2025. The Department of Health and Family Welfare (DoHFW) has also taken up with States to prioritize allocation to health sector and enhance their health budgets at least by 8% of total State budget to reach the goal as envisaged.

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