National Health Accounts 2022-23 Reflects Stronger Public Healthcare Financing in India

India’s Healthcare Financing Shows Positive Shift

National Health Accounts 2022-23 Reflects Stronger Public Healthcare Financing in India: The Ministry of Health and Family Welfare has released the National Health Accounts (NHA) Estimates 2022–23, highlighting significant progress in India’s healthcare financing over the past decade. The report indicates higher government health expenditure, lower out-of-pocket medical expenses, and expanding financial protection through public health programmes.

The findings suggest that India is steadily moving towards a more accessible and affordable healthcare system by increasing public investment and strengthening health insurance coverage.

Static GK fact: The National Health Accounts (NHA) estimates are prepared by the National Health Accounts Technical Secretariat (NHATS) under the National Health Systems Resource Centre (NHSRC), functioning under the Ministry of Health and Family Welfare.

Government Spending on Health Continues to Rise

One of the major highlights of the report is the steady increase in Government Health Expenditure (GHE). Government spending on health rose from 1.15% of GDP in 2013–14 to 1.43% of GDP in 2022–23. Under the revised 2022–23 GDP base year, the figure stands at 1.48%.

The share of health spending in the General Government Expenditure also increased from 3.78% to 4.89%, reflecting greater policy emphasis on strengthening public healthcare services.

Per Capita Health Spending Records Strong Growth

Government expenditure on healthcare per person has increased substantially over the last decade. Per Capita Government Health Expenditure rose from ₹1,042 in 2013–14 to ₹2,786 in 2022–23, representing a growth of nearly 2.7 times.

The increase reflects sustained investment in healthcare infrastructure, medical services, disease control programmes, and public welfare initiatives across the country.

Out-of-Pocket Medical Expenses Continue to Decline

The report highlights a significant reduction in Out-of-Pocket Expenditure (OOPE), which refers to medical expenses paid directly by households. OOPE declined from 64.2% of the Total Health Expenditure in 2013–14 to 43.4% in 2022–23.

This decline indicates improved financial protection for citizens through government-funded healthcare schemes and insurance coverage, reducing the burden of medical expenses on families.

Static GK Tip: Out-of-Pocket Expenditure (OOPE) is considered a key indicator for assessing financial protection in the healthcare sector. Lower OOPE generally reflects stronger public healthcare support.

COVID-19 Strengthened Public Health Investment

Government health expenditure reached 1.84% of GDP during 2021–22, mainly due to additional spending during the COVID-19 pandemic. Investments included the Emergency COVID Response Packages (ECRP-I & II), nationwide vaccination drives, and pandemic management programmes.

The report also notes that the share of Government Health Expenditure in Total Health Expenditure (THE) increased from 28.6% in 2013–14 to 43.7% in 2022–23, indicating a larger role of public financing in healthcare delivery.

Insurance and Social Security Coverage Expands

Healthcare spending through Social Security Expenditure (SSE) increased from 6% in 2013–14 to 9.9% in 2022–23. Flagship initiatives such as Ayushman Bharat PM-JAY, government employee reimbursement schemes, and other social health insurance programmes contributed to this improvement.

Private health insurance also expanded considerably, with its share in Total Health Expenditure rising from 3.4% to 9.2%, reflecting growing health awareness and increased insurance penetration among citizens.

Static Usthadian Current Affairs Table

National Health Accounts 2022-23 Reflects Stronger Public Healthcare Financing in India: