Government Health Spending Nearly Triples in a Decade as Out-of-Pocket Medical Expenses Decline; NHA Report
Government expenditure on healthcare in India has nearly tripled over the past decade, while the financial burden on households for medical treatment has significantly reduced, according to the latest National Health Accounts (NHA) estimates released
Government expenditure on healthcare in India has nearly tripled over the past decade, while the financial burden on households for medical treatment has significantly reduced, according to the latest National Health Accounts (NHA) estimates released by the Union Ministry of Health and Family Welfare.
The report highlights a major shift in India’s healthcare financing landscape, driven by increased public investment in healthcare infrastructure, health insurance schemes, and primary healthcare services. Government Health Expenditure (GHE) has risen substantially over the years, reflecting the Centre and states’ growing focus on strengthening healthcare access and affordability.
One of the most significant findings of the report is the decline in Out of Pocket Expenditure (OOPE) the amount patients pay directly from their own pockets for treatment. According to the NHA estimates, OOPE as a share of Total Health Expenditure has fallen from around 62.6% in 2014-15 to nearly 39.4% in recent years, indicating improved financial protection for households.
Health experts attribute this decline to the expansion of publicly funded health programmes, including the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which provides health coverage of up to ₹5 lakh per eligible family annually. Increased spending on public hospitals, health and wellness centres, and state insurance schemes has also contributed to reducing treatment costs borne by citizens.
The report further indicates that government health spending as a percentage of GDP has steadily increased, while per capita public health expenditure has also witnessed substantial growth over the decade.
Public health experts say the findings reflect progress towards universal health coverage and improved healthcare accessibility. Lower out of pocket spending is particularly important in India, where unexpected medical expenses have historically pushed many families into financial distress.
The latest NHA estimates underscore the impact of sustained public investment in healthcare and highlight the government’s efforts to make medical services more affordable, accessible, and equitable for millions of Indians.
