News

Indian Government Responds to Lancet Report on Healthcare Spending

The Indian government has come forward to defend its stance, emphasizing a surge in budget allocation and the implementation of various healthcare initiatives.

• By PharmaNews Live Desk
• New Delhi
• Apr 15, 2024

News

In response to a recent Lancet report critiquing India's healthcare expenditure, the Indian government has come forward to defend its stance, emphasizing a surge in budget allocation and the implementation of various healthcare initiatives. 

"As per the National Health Policy, 2017, public investment in health is envisioned to reach 2.5% of GDP by 2025. Ministry of Health and Family Welfare (MoHFW) has taken up with States to prioritize allocation to the health sector and enhance their health budgets by at least 10 per cent every year to reach the goal as envisaged," one government source stated, as reported by various media outlets. 

The Department of Health and Family Welfare's budget estimates have seen a significant increase, rising from Rs 36,948 crore in 2014-15 to Rs 86,175 crore in 2023-24, marking a notable 133.23% surge. 

According to the report by medical journal Lancet, the government spending on health has fallen and now hovers around an 'abysmal' 1.2 per cent of gross domestic product. “Out-of-pocket expenditure on health care remains extremely high, and flagship initiatives on primary health care and universal health coverage have so far 'failed' to deliver services to people most in need," the Lancet report stated. 

In response, government sources stated that the Health Ministry is making continuous efforts to increase allocation in health budget. The 15th Finance Commission has allocated Rs 70,051 crore for health grants through local governments, enhancing accessibility to healthcare services, as reported by various media outlets. 

"As per National Health Accounts estimates for 2019-20, the key achievements in the health sector, that the total health expenditure was Rs 4,83,259 crore in 2014-15, which in 2019-20 has risen to Rs 6,55,822 crore," a government source mentioned. 

The Government also made it clear that ‘out-of-pocket expenditure’ has been decreasing. ‘Out-of-pocket expenditure (OOPE) as a per cent of total health expenditure has decreased to 47.1 per cent in 2019-20 from 62.6 per cent in 2014-15,'" the sources added. 

Regarding the efficacy of flagship healthcare initiatives, government sources stated, "Government has launched four mission mode projects, namely PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), Ayushman Arogya Mandir (erstwhile AB-HWCs), Pradhan Mantri Jan Arogya Yojana (PMJAY) and Ayushman Bharat Digital Mission (ABDM). Recently, Government has launched the Ayushman Bhav campaign." 

Furthermore, they highlighted measures to enhance healthcare accessibility, including the provision of affordable generic medicines and telemedicine services under Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) and eSanjeevani. 

As the debate surrounding healthcare spending continues, the Indian government remains steadfast in its stand that the overall healthcare accessibility and affordability for all citizens has improved, and will continue on the upward trajectory.