Govt’s share in total health expenditure jumps to 48.0 % from 29.0 % between FY15 and FY22: Economic Survey

New Delhi: As per Economic Survey, the Total Health Expenditure (THE) in FY22 is estimated to be ₹9,04,461 crore (3.8 per cent of GDP and ₹6,602 per capita at current prices). Total Health Expenditure per capita (at constant prices) has shown an increasing trend since FY19.

In the total health expenditure of the country between FY15 and FY22, the share of government health expenditure has increased from 29.0 per cent to 48.0 per cent.

Out of the THE, current health expenditure (CHE) is ₹7,89,760 crore (87.3 per cent of THE), and capital expenditure is ₹1,14,701 crore (12.7 per cent of THE). An increase in the share of capital expenditure in THE from 6.3 per cent in FY16 to 12.7 percent in FY22 is a positive sign as it will lead to broader and better health infrastructure.

The AB-PMJAY has revolutionized healthcare by providing health coverage to bottom 40 per cent of India’s most vulnerable populations. The increase in government spending on health has an important implication for the reduction of financial hardship endured by households. As of 15 January 2025, more than 40 lakh senior citizens have been enrolled in the scheme.

AB-PMJAY has played a decisive role in the significant reductions observed in Out-of-pocket expenditure (OOPE) through an increase in social security and primary health expenditure, with over ₹1.25 lakh crore in savings recorded.

Other initiatives, such as the Free Dialysis scheme, have benefited around 25 lakh people. The reduction in OOPE goes hand in-hand with increased public spending in healthcare, demonstrating progress towards universal health coverage.

Under the scheme, by transforming sub-health centres (SHCs) and primary health centres (PHCs), Ayushman Arogya Mandirs (AAM) (formerly Health & Wellness Centres) have been operationalised, in rural and urban areas, offering a universal, free, and expanded package of preventive, promotive, curative, palliative, and rehabilitative services closer to communities.

Technology in Healthcare

The Economic Survey has highlighted that under Ayushman Bharat Digital Mission (ABDM) 72.81 crore Ayushman Bharat health Accounts have been created.

It has also highlighted that E-Sanjeevani – the National Telemedicine Service, has emerged as the world’s largest telemedicine implementation in primary healthcare. It has served over 31.19 crore patients through 1.29 lakh AAM as spokes, which are served by 16,447 hubs and 676 online OPDs.

The Economic Survey further states that on the U –WIN portal  over 1.7 crore pregnant women and 5.4 crore children have  registered digitally and tracked more than 26.4 crore vaccine doses in real-time.

Economic Survey points out that Drones are transforming healthcare in India by ensuring rapid delivery of life-saving medicines and collecting samples from remote and inaccessible areas, proving indispensable during emergencies.

The project ‘i-DRONE’ was launched under the aegis of the MoHFW in October 2021 with the view to assess the feasibility of using drones to deliver vaccines and medical supplies.

The Economic Survey says that India has great potential in Artificial Intelligence adoption in Healthcare. It also stated that in 2023, 34 per cent of healthcare organisations in India were piloting AI projects, and 16 per cent had moved their generative AI initiatives into production.

The Economic Survey 2024-25 states that with full immunisation coverage for FY24 at 93.5 per cent nationally, the Univeral Immunisation Programme  continues to safeguard public health and ensure equitable access to essential vaccines. A child who has received Bacille Calmette Guerin (BCG), three doses of Oral Polio Vaccine (OPV), three doses of Pentavalent and one dose of

Measles Rubella (MR) by the first year of age is called a fully immunised child.

The Survey also states that the Jan Aushadhi scheme, launched to provide affordable medicines, has has improved access to low-cost drugs achieving record sales in 2024 and expanding to over 14,000 kendras nationwide.