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Says out-of-pocket expenditure in India decreasing
DIMAPUR — Nagaland government funnels 8% of its general expenditure towards healthcare, according to the latest National Health Accounts (NHA) data.
Released recently by the Union Ministry of Health and Family Welfare, NHA 2021-22 revealed that the Government Health Expenditure (GHE) for Nagaland against its Government General Expenditure (GGE) was 8%.
Conversely, the GHE for Nagaland against its Gross State Domestic Product (GSDP) was 3.4%. Nationwide, Meghalaya had the highest GHE against GSDP at 5.9%; Gujarat and Telangana were joint-lowest with 1%.
In GHE against GGE, Delhi was at the top with 26.8%, while Punjab had the lowest percentage of expenditure at 6.6%.
The report further revealed that the per capita Total Government Health Expenditure (TGHE) for Nagaland was INR 5490. Mizoram’s per capita GHE was highest in the country at INR 9,570; with INR 1,320, Bihar had the lowest.
Also, it reported that the out-of-pocket expenditure (OOPE) by the common people on health in India is decreasing, largely due to increased government investment and an improved public healthcare framework.
OOPE in healthcare refers to the money people pay directly from their own pockets for medical services, such as doctor visits, medicines, and hospital stays.
The NHA data indicated that between 2014-15 and 2021-22, the Centre’s GHE, as a percentage of GDP, rose from 1.13% to 1.84%. Additionally, the GHE’s share of overall government spending grew from 3.94% to 6.12%—reflecting a significant jump in government expenditure on public health.
During the same period, the country’s per capita health spending tripled from INR 1,108 to INR 3,169.
“This increase allows the government to strengthen public healthcare infrastructure, making services more affordable and accessible to the public, thereby directly reducing OOPE,” the Union Ministry of Health and Family Welfare stated.
Social Security Expenditure on healthcare, including government-funded health insurance and social health programmes, rose from 5.7% of Total Health Expenditure (THE) in 2014-15 to 8.7% in 2021-22.
“This expansion protects individuals from catastrophic health expenditures and lowers their OOPE (NHA 2021-22),” the ministry added. Programmes like Ayushman Bharat, along with various state-level health insurance schemes, have provided insurance coverage to economically vulnerable populations. This reduces their reliance on personal finances for healthcare, contributing to the decline in OOPE, it stated.
According to the ministry, the decline in OOPE makes healthcare services more affordable, encouraging individuals, especially in rural areas, to seek medical care without financial worry. This leads to more equitable access to healthcare across various socio-economic groups.
“Reduced OOPE allows the public healthcare system to cater to a broader population base, distributing healthcare resources more equitably and strengthening the overall system to handle increased demand,” it stated.