·PIB·15 marks·250 wordsPolityIRSociety

India's Government Health Expenditure as a share of GDP remains below the National Health Policy 2017 target despite a threefold nominal rise. Critically examine the reasons and suggest measures for achieving Universal Health Coverage.

In this answer
  1. Reasons the GDP target remains unmet
  2. Signs of progress toward UHC
  3. Measures for UHC

The National Health Accounts (NHA) Estimates 2022-23 show Government Health Expenditure (GHE) tripling to ₹3.85 lakh crore, yet its GDP share stands at just 1.43%, well short of the National Health Policy (NHP) 2017 target of 2.5% by 2025 — exposing a gap between nominal fiscal effort and structural adequacy [1].

Reasons the GDP target remains unmet

  • Denominator effect: nominal GHE tripled, but rapid GDP growth over the decade muted the ratio's rise (1.15% → 1.43%) [1].
  • Federal fragmentation: health is a State subject; uneven state fiscal capacity limits aggregate GHE despite central schemes.
  • Low base and competing priorities: GHE forms only 4.89% of General Government Expenditure, crowded out by other demands [1].
  • Absorption gaps: weak utilisation and infrastructure deficits blunt spending impact.

Signs of progress toward UHC

  • OOPE fell sharply from 64.2% to 43.4% of Total Health Expenditure, cutting catastrophic-spending risk [1].
  • Social Security Expenditure rose 6% → 9.9%, driven by AB-PMJAY [1].
  • Primary healthcare spending doubled to ₹1.4 lakh crore via Health & Wellness Centres [1].

Measures for UHC

  • Front-load public spending toward the 2.5% goal through higher state allocations.
  • Deepen primary care and Health & Wellness Centres to pre-empt costly hospitalisation.
  • Expand PMJAY coverage; strengthen human resources and diagnostics.
  • Adopt 15th Finance Commission grants to correct inter-state disparities.

Falling OOPE and rising public financing signal a maturing system; sustained, equitable investment aligned with SDG-3 can convert nominal gains into genuine Universal Health Coverage.

Sources

  1. 1Union Health Ministry Releases the National Health Accounts Estimates for India 2022-23 (PIB, 27 May 2026)GHE tripling to ₹3.85 lakh crore, GHE/GDP 1.15%→1.43%, GHE 4.89% of GGE, OOPE 64.2%→43.4%, SSE 6%→9.9%, primary healthcare spending doubling to ₹1.4 lakh crore.
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