The National Health Policy 2017 envisages increasing public expenditure on health

The government spending on healthcare in India as a percentage of GDP has increased from 1.16 per cent in 2004-05 to 1.4 per cent in 2016-17 as per Economic Survey

The Twelfth Five Year Plan projected to increase total public fund, plan and non-plan on core health to 1.87 per cent of GDP by the end of Twelfth Plan. The National Health Policy, 2017 envisages increasing public expenditure on health to 2.5 per cent of GDP in a time bound manner by 2025. Anupriya Patel, Minister of State, Health and Family Welfare stated this in a written reply in the Rajya Sabha, here today.

As per WHO Global Health Expenditure database 2014, the expenditure on healthcare for BRICS is China- 3 per cent, the Russian Federation- 4 per cent, Brazil- 4 per cent and South Africa- 4 per cent of Gross Domestic Product. The government spending on healthcare in India as a percentage of GDP has increased from 1.16 per cent in 2004-05 (Actual) to 1.4 per cent in 2016-17 (BE) as per Economic Survey.

The allocation of funds for health sector is based inter-alia, on the availability of resources and competing claims on these resources. An increase in economic growth makes available increased resources for funding the health sector. In addition to this, availability of overall resources, past utilisation, requirements and absorptive capacity inter-alia guide the allocations to the health sector.