Govt health expenditure fell from 1.35% of GDP in 2018 to 1.28% in 2019

The government's health expenditure as a percentage of the GDP fell from 1.35 in 2017-18 to 1.28 in the next year, according to the data released on Monday.

While the Centre's share in the total government health expenditure fell to 34.3 per cent in 2018-19, from 40.8 per cent in the previous year, the states' share during the same period rose from 59.2 per cent to 65.7 per cent, the latest national health estimates showed.

In the same period, the out-of-pocket expenditure as a percentage of the total health expenditure also fell from 48.8 to 48.2.

However, when compared with the figures of 2013-14, the out-of-pocket expenditure on health decreased substantially by 16 percentage points from 64.2 per cent.

Out-of-pocket expenditures are expenditures directly made by households at the point of receiving healthcare. This indicates the extent of financial protection available for households towards healthcare payments.

When it comes to the total health expenditure, it fell to 3.2 per cent of the Gross Domestic Product (GDP) in 2018-19, the last year for which the data is available, from 3.3 per cent in the preceding year and 4 per cent in 2013-14.

The total health expenditure constitutes current and capital expenditures incurred by government and private sources, including external funds. As a percentage of the GDP, it indicates the health spending relative to a country's economic development.

The total health expenditure per capita, which indicates the health expenditure per person in the country, at current prices, however, increased to Rs 4,470 in 2018-19, from Rs 4,297 in the previous year and from Rs 3,638 in 2013-14.

The social safety net for healthcare expenditure increased from 6 per cent in 2013-14 to 9.6 per cent in 2018-2019.