Economic Survey 2023-2024 Highlights Enhanced Accessibility and Affordability of Healthcare in India

New Delhi: The Economic Survey 2023-2024, presented in Parliament today by Union Minister of Finance and Corporate Affairs Nirmala Sitharaman, reveals significant progress in making healthcare more affordable and accessible for the general public. The Survey emphasizes key developments in government health expenditure, primary healthcare focus, social security in health, and notable improvements in health indicators, as outlined by the latest National Health Accounts (NHA) estimates.

The Survey highlights the latest NHA estimates for FY20, noting an increase in the share of Government Health Expenditure (GHE) in both the total GDP and Total Health Expenditure (THE). This increase underscores the government’s commitment to enhancing the healthcare infrastructure and ensuring wider access to medical services.

Over the years, there has been a notable shift towards primary healthcare. The Survey indicates that the share of primary healthcare expenditure increased from 51.3% of GHE in FY15 to 55.9% in FY20. Additionally, the combined share of primary and secondary care in GHE rose from 73.2% in FY15 to 85.5% in FY20. In contrast, the share of primary and secondary care in private health expenditure declined from 83.0% to 73.7% during the same period. This shift is attributed to a rising tertiary disease burden and greater utilization of government facilities for primary healthcare.

The Economic Survey also notes a significant increase in social security expenditure on health, which grew from 5.7% in FY15 to 9.3% in FY20. Concurrently, there was a decline in out-of-pocket expenditure (OOPE) as a percentage of Total Health Expenditure (THE), indicating that healthcare costs are becoming more manageable for individuals.

These financial and structural improvements have contributed to notable advancements in key health indicators. The Infant Mortality Rate (IMR) declined from 39 per 1000 live births in 2013 to 28 per 1000 live births in 2020, while the Maternal Mortality Rate (MMR) dropped from 167 per lakh live births in 2014 to 97 per lakh live births in 2020. These improvements reflect the positive impact of increased investment and focus on healthcare.

Looking ahead, the Economic Survey recommends prioritizing two key trends that will shape the health and disease profile of the country. Firstly, the Government and the public must emphasize healthy eating and mental health. Secondly, as public health is a State subject, the Survey underscores the crucial role of state and local governance in ensuring that national health programs effectively reach the grassroots level through efficient and adaptive strategies.