Health expenditure remains only 1.2% of GDP in 2014

While the activists have time and again slammed successive governments for spending less in healthcare, the health minister of current dispensation, Mr J P Nadda has assured that it will increase to 2.5 percent by the end of 12th plan


The Modi government has not given any exceptional treatment to the healthcare sector in the recently presented budget 2015-16. The government announced 297 billion rupees ($4.81 billion) for healthcare, roughly 2 percent higher than current year's revised budget of 290 billion rupees. 

Earlier a senior health ministry official had told BioSpectrum that India's constraints on reforms are a hinderance and had stressed on finding innovative alternatives. "Technologies will have to play an important role in meeting requirements. We have to shift priorities towards innovation development and delivery of quality products," he had mentioned.

The health minister, Mr J P Nadda in a written reply in the Rajya Sabha on March 10, 2015, stated that as per Economic Survey 2014-15, the expenditure by the government (central and state combined) on health as percentage of Gross Domestic Product (GDP) for 2014-15 (BE) is 1.2 per cent.

However, Mr Nadda mentioned that as per 12th Five Year Plan document, total public funding by the Centre and States, plan and non-plan, on core health is envisaged to increase to 1.87 per cent of GDP by the end of the 12th Plan.

"When viewed in the perspective of the broader health sector, the total government expenditure as a proportion of GDP is envisaged to increase to 2.5 per cent by the end of the 12th Plan," said the minister.


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