Home / Health / India's Health Spend: Households Bear Heavy Load
India's Health Spend: Households Bear Heavy Load
28 May
Summary
- Households bear over half of India's current health expenditure.
- Out-of-pocket spending is nearly half of total health expenses.
- Preventive care spending is significantly low at 8.88%.
India's healthcare system sees households shouldering a significant financial burden, as revealed by the National Health Accounts Estimates for 2022-23. While public financing has seen some growth, out-of-pocket expenditure (OOPE) constitutes nearly half of the current health expenditure, indicating incomplete financial protection for citizens.
The total health expenditure in India for 2022-23 was estimated at Rs. 8,81,359 crores, representing 3.37% of the GDP. Government health expenditure (GHE) stands at Rs. 3,85,332 crores, less than half of the total, with state governments contributing more than the union government.
Households contribute the largest share of current health expenditure at 56.44%, with OOPE making up 49.90% of this. This is despite an increase in social security spending and private health insurance, which cover 11.25% and 10.66% of current health expenditure, respectively.
A significant concern is the low allocation to preventive care, which accounts for only 8.88% of current health expenditure. This is particularly worrying given that non-communicable diseases are responsible for 60% of all deaths in India. Curative care, however, consumes over 56% of the spending.
