Trends and Patterns of Health Expenditure in India
Dr. Y Kesava Reddy
Associate Professor and Head, Department of Economics, Central University of Andhra Pradesh, Andhra Pradesh
Yellapragada Venkata Siri Koustubha
Under graduate student, Department of Economics, Central University of Andhra Pradesh, Andhra Pradesh
Download PDF http://doi.org/10.37648/ijps.v18i01.015
Abstract
This study examines health expenditure trends in India from 2013–14 to 2021–22, focusing on the relationship between GDP and government health spending, and its impact on key health outcomes. It highlights the effects of COVID-19 on these trends and reveals regional disparities in spending across 21 states. The findings show a positive link between per capita GDP and public health expenditure, which contributes to improved life expectancy and reduced mortality. However, states like Bihar and Jharkhand lag behind, emphasizing the need for targeted reforms to advance SDG 3: Good Health and Well-Being.
Keywords:
Health Expenditure; Per capita; Government Health Expenditure; Out-of-Pocket Health Expenditure; Gross Domestic Product; Life Expectancy; Infant Mortality Rate
References
- Baru, R., Acharya, A., & Chatterjee, R. (2010). Health sector financing in India: A review of selected schemes. Economic and Political Weekly, 45(25), 43–52.
- Berman, P., Reddy, S., & Nair, A. (2010). Health expenditures across states: Variations and implications. World Bank Policy Research Working Paper No. 5154.
- Bhan, N., Chakraborty, P., & Gupta, S. (2021). COVID-19 and maternal-child health outcomes in India. The Lancet Global Health, 9(7), e947–e955. https://doi.org/10.1016/S2214-109X(21)00220-4
- Chakraborty, S. (2023). Public spending and long-term health outcomes in India: A VAR model approach. Indian Journal of Public Finance, 12(3), 45–58
- Dasgupta, R., & Qadeer, I. (2019). Fiscal federalism and health equity in India. Indian Journal of Public Policy, 31(2), 102–118.
- Devadasan, N., & Reddy, A. (2020). Budget trends under the National Health Mission: An analytical review. MoHFW Policy Review, 4(1), 75–89.
- Ghosh, A., & Sahu, P. (2023). Political economy of health expenditure: Do politics shape funding? Social Scientist, 45(6), 103–119.
- Jain, R., & Taneja, N. (2023). Public health spending and life expectancy in Indian states. NFHS Working Paper, 17(4), 128–141.
- Kumar, A. (2022). Fiscal response to COVID-19: Implications for public health in India. Economic Survey Bulletin, 2(1), 33–45.
- Mukherjee, S., & Ghosh, M. (2019). Fiscal decentralization and state-level health spending patterns in India. RBI Bulletin, 76(4), 55–68.
- Pandey, S., Yadav, D., & Verma, T. (2021). Public health expenditure in Northeast India: An outcome-based analysis. Journal of Regional Development, 14(2), 49–63.
- Patnaik, I., & Sengupta, R. (2018). Macroeconomic reforms and health sector outcomes in India: A panel data analysis. NIPFP Working Paper, 45(6), 102–116.
- DataBank: World Development Indicators. (n.d.). World Bank. https://databank.worldbank.org/source/worlddevelopment-indicators
- Documentation and downloads. (n.d.). Human Development Reports (UNDP). https://hdr.undp.org/datacenter/documentation-and-downloads
- Economic Survey 2024-25: India’s health spending doubles to Rs 6.1 lakh crore in four years. (2025). Government of India.
- Human Development Index. (n.d.). Human Development Reports (UNDP). https://hdr.undp.org/datacenter/human-development-index#/indicies/HDI
- International Journal of Social Science and Economic Research. (2021). https://ijsser.org/2021files/ijsser_06__348.pdf
- National Health Accounts. (n.d.). National Health Systems Resource Centre (NHSRC). https://nhsrcindia.org/national-health-accounts-records
- Press Information Bureau. (n.d.). Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=1894902
- UNICEF India data. (n.d.). https://data.unicef.org/country/ind/
- Union Budget of India: Economic Survey. (n.d.). Ministry of Finance. https://www.indiabudget.gov.in/economicsurvey/allpes.php