Public Expenditure on Health in India

As per Economic Survey 2015-16, the expenditure by Government (Central and State Governments combined) on health as percentage of Gross Domestic Product (GDP) for 2015-16 (BE) is 1.3 per cent.

A statement showing public health expenditure on health as percentage of GDP in India vis-à-vis select developed/developing countries for 2012, is given below:

S/No. Name of Country Public  expenditure on health as percentage  of GDP  – 2012


1 Bangladesh 1.12
2 China 3.02
3 India 1.16
4 Indonesia 1.19
5 Kuwait 2.15
6 Malaysia 2.21
7 Oman 2.17
8 Pakistan 1.03
9 Peru 2.86
10 Sri Lanka 1.21
11 Thailand 3.58
12 United Kingdom 7.81
13 United States of America 7.99
14 Russian Federation 3.32
15 Spain 6.67

Source:  World Health Statistics 2015 published by World Health Organization

Health being a State subject, the Central Government supplements the efforts of the State Governments through financial assistance.

The Government had formulated a Draft National Health Policy, which aims at attainment of the highest possible level of good health and well-being, through a preventive and promotive health care orientation in all developmental policies, and universal access to good quality health care services without anyone having to face financial hardship as a consequence.

The primary responsibility to increase the accountability of the public and private healthcare systems rests with the State/UT Governments as health is a State subject.

The Central Government has enacted the Clinical Establishment (Registration and Regulation) Act, 2010 and also notified Clinical Establishments Rules 2012, to provide a legislative framework for the registration and regulation of clinical establishments in the country and also seeks to improve the quality of health services by prescribing minimum standards of facilities and services which may be provided.

Further, the Medical Council of India (MCI) grants recognition of medical qualifications, gives accreditation to medical colleges, grants registration to medical practitioners, and monitors medical practice in India, through the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002.

Under the National Health Mission, support is being provided to States/UTs to strengthen their healthcare systems to provide accessible, affordable and quality health care to all the citizens. Moving towards Universal Health Coverage wherein people are able to use quality health services that they need without suffering financial hardship,  is a key goal of 12th Plan.