The 2023-24 Union Budget speech by the finance minister announced a total central government budget for health of approximately Rs 86,175 crore ($10 billion), equivalent to roughly Rs 615 per citizen. This represents a 2.7% increase from the previous fiscal year but a decrease in real terms due to a higher rate of inflation. The government’s health spending covers important areas such as immunization, maternal health, and disease control and accounts for a significant portion of overall health spending in the country.
Despite this budget allocation, the burden of healthcare remains high in India, particularly for the poor, elderly, and sick who often turn to the expensive private sector. India’s health spending of 3.2% of its GDP is lower compared to the average of 5.2% for Lower and Middle-Income Countries. The government’s health expenditure is also lower compared to countries such as China, Thailand, and Sri Lanka.
To address these challenges, there are several suggested solutions such as rationalizing the National Health Mission’s spending, balancing health care for urban and rural areas, and focusing on health research. The health and education of the citizens are crucial for the country’s future success, and there is a need to find ways to increase both funding and access to health services.
Important Points
- Total central government budget for health announced in 2023-24 Union Budget speech: Rs 86,175 crore ($10 billion)
- Health spending per citizen: roughly Rs 615
- Increase from previous fiscal year: 2.7 percent
- Real terms decline of central government health spending
- Significance of government spending on health: immunization, newborn and child health and nutrition, maternal health, infectious disease control, and health systems and training.
- Lower allocation on health compared to overall health spending
- Cost of vaccinating a single child: Rs 1,600
- Estimated cost of a day in a public hospital: Rs 2,800
- Estimated cost of a day in a private hospital: Rs 6,800
- Increased burden on the poor, elderly, and sick
- Widening gap between poor and non-poor households
- WHO reports that 55 million people fall into poverty due to health expenditures
- India’s health spending as a percentage of GDP: 3.2 percent
- Government health expenditure as a percentage of GDP: 1.1 percent
- Lower health spending compared to Lower and Middle-Income Countries
- Lower allocation to non-communicable diseases (NCDs) in National Health Mission
- Urban areas have poorly developed primary care infrastructure
- Lower immunization coverage in urban India
MCQs on Indian Health Care
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What is the primary aim of the National Health Policy of India?
A. To provide healthcare services to all citizens
B. To provide financial support for healthcare services
C. To provide quality healthcare services at affordable costs
D. All of the above
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What is the main focus of Ayushman Bharat scheme launched by the Indian government?
A. To provide health insurance for the poor
B. To provide financial assistance to rural areas for health services
C. To provide free healthcare services to all citizens
D. To provide better healthcare infrastructure in urban areas
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What is the main objective of the Indian government’s National Rural Health Mission (NRHM)?
A. To provide better healthcare services in rural areas
B. To improve maternal and child health in rural areas
C. To provide free healthcare services to rural populations
D. All of the above
