GOVERNMENT OF INDIA

MINISTRY OF HEALTH AND FAMILY WELFARE

LOK SABHA

STARRED QUESTION NO: 164

ANSWERED ON:15.07.2009

EXPENDITURE ON HEALTH SECTOR

MURLI MANOHAR JOSHI

(a) the total expenditure on health as percentage of the Gross Domestic Product (GDP) during the last three years;

(b) whether the expenditure on health is very low in the Government sector as compared to the private sector;

(c) if so, the details thereof and the reasons therefor;

(d) the average annual amount spent/being spent on health sector during the last three years and the current year;

(e) whether the health sector has largely been commercialised in the country; and

(f) if so, the reaction of the Government thereto?

Will the Minister of HEALTH AND FAMILY WELFAREbe pleased to state:- 

ANSWER

THE MINISTER OF HEALTH AND FAMILY WELFARE

(SHRI GHULAM NABI AZAD) 

(a)to(f): A statement is laid on the Table of the House. STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 164 FOR 15TH JULY, 2009

(a) As per Economic Survey 2008-09 published by the Ministry of Finance, Department of Economic Affairs, the total expenditure on Health as a percentage of GDP during the last four years was as follows:

2005 – 06 (Actual) 1.27%

2006 – 07 (Actual) 1.26%

2007 – 08 (RE) 1.41%

2008 – 09 (BE) 1.41%

(b) & (c) Yes. The expenditure in the government sector as compared to the private sector is very low in India. As per the National Commission on Macroeconomics and Health 2005, health spending in India is estimated to be in the range of 4.5% to 6% of GDP. These estimates are based on a weak methodological background. Therefore, an exercise was undertaken to construct estimates of health spending based on a National Health Account (NHA) framework. Such an approach enables a better and more reliable understanding of the size and structure of health financing in India. Results from the National Health Account show that the total health expenditure in India for the year 2001-02 was approximately Rs.105,734 crore which accounting for 4.63% of the GDP (market prices). Of the total expenditure, 20.3% was public/Government expenditure, 77.4% was private expenditure and remaining 2.3% external support. At disaggregate level, Central Government contribution to the total health expenditure was 6.4%, State Government 12.6% and local bodies and Panchayat Raj Institutions 1.3%. The household consumer expenditure data of various rounds of the National Sample Survey Organization (NSSO) suggests that households spend about 5%-6% of their total consumption expenditure on health and nearly 11% of all non-food consumption expenditure. Clearly the provision of financial resources for the public sector system of health care has been inadequate in the past. It is for this reason that the National Rural Health Mission (NRHM) was launched in April, 2005, by the Hon’ble Prime Minister for providing quality health services which are accessible, affordable and accountable. The objective has been to raise public expenditure on health as a proportion of GDP to 2%-3%.

(d) As per the Economic Survey 2008-09 the expenditure on Health Sector for the last four years is as follows: