On 25th September 2024, the Union Ministry of Health and Family Welfare (MoHFW) released the National Health Accounts (NHA) Estimates for India 2020-21 and 2021-22. These estimates are 8th and 9th editions of reports released annually by the MoHFW.
- As per these latest NHA estimates, the Out-of-Pocket Expenditure (OOPE) out of the Total Health Expenditure has decreased significantly from 64.2% (in 2013-14) to 39.4% (in 2021-22) which shows a positive indicator in the health sector.
About NHA Estimates:
i.NHA Estimates for India are prepared by National Health Systems Resource Centre (NHSRC) which was designated as National Health Accounts Technical Secretariat (NHATS) in August, 2014 by the MoHFW.
ii.These estimates are prepared based on the globally accepted accounting framework of ‘A System of Health Accounts (SHA), 2011’ which facilitates inter-country comparisons, developed by World Health Organisation (WHO).
iii.The report provides a systematic description of the financial flows of the health system of India by various sources, how healthcare is provided, and the nature of healthcare services that are used.
Health Expenditure Estimates :
i.The NHA estimates for 2021-22 show that the Government expenditure for healthcare is increasing steadily in the country which reflects the efforts of the Government of India (GoI) to increase public investments in the health sector.
ii.As per the NHA, share of Government Health Expenditure (GHE) in the overall Gross Domestic Product (GDP) of the country has increased from 1.13% (in 2014-15) to 1.84% (in 2021-22).
iii.Also, GHE in terms of the General Government Expenditure (GGE) has increased from 3.94% (in 2014-15) to 6.12% (in 2021-22).
iv.In per capita terms, GHE has increased 3 times from Rs 1,108 to Rs 3,169Â between 2014-15 and 2021-22. The NHA estimate reveals that the government spending on health between 2019-20 and 2020-21 has increased by 16.6%.
- While, government spending has increased exponentially by 37% between 2020-21 and 2021-22, which highlights the robust role played by the GoI in tackling COVID-19 pandemic.
v.The share of GHE in the Total Health Expenditure (THE) of the country has increased from 29% (in 2014-15) to 48% (in 2021-22).
vi.The share of Social Security Expenditure (SSE) on healthcare, which includes government-funded health insurance, medical reimbursement to government employees, and social health insurance programs, in THE, has increased to 8.7%Â in 2021-22, up from 5.7% in 2014-15.
Key Indicators of NHA Estimates for India for 2021-22:
| Indicators | 2014-15 | 2021-22 |
|---|---|---|
| Share of GHE in Total GDP of the Country | 1.13% | 1.84% |
| The Share of GHE in THE | 29% | 48% |
| The Share of GHE in GGE | 3.94% | 6.12% |
| The share of SSE on healthcare, in THE | 5.7% | 8.7% |
| The share of GHE in per capita | Rs 1,108 | Rs 3,169 |
Other Key Estimates :
i.The THE in terms of per capita which indicates health expenditure per person in India at current prices has increased significantly by 87%, from Rs 3,826 (in 2014-15) to Rs 6,602 (in 2021-22).
- While, THE including both current and capital expenditures incurred by government and private sources, was estimated to be over Rs 9 lakh crore, which is 3.83% of GDP for 2021-22.
ii.As per the NHA estimates, the share of GHE in THE has jumped by 68%, from 29% (in 2014-15) to 48% (in 2021-22).
iii.The report highlighted that India’s current health expenditure which includes only recurrent expenditures for healthcare purposes, was nearly Rs 7.89 lakh crore.
- The contribution of the Union government and state governments in total current health expenditures was 15.94% and 21.77%, respectively.
- While, government hospitals and private hospitals contributed 18.99% and 26.96%, respectively of the current health expenditures.
- The share of households, including insurance contributions was the highest in total current health expenditure, which stood at nearly Rs 4 lakh crore, up 51% of current health expenditure.
iv.Private Health Insurance expenditure, including the premiums households or employers pay is Rs 66,975 crore, which accounts 7.40% of the THE for 2021-22.
- Contribution of services in current health expenditure: Inpatient Curative care contributed 37.94% of the current health expenditure, followed by prescribed medicines (15.98%), outpatient curative care (15.30%), and preventive care (13.55%), among others.
State-Wise Contribution in THE:
i.Maharashtra, Uttar Pradesh (UP) and West Bengal (WB) were the top 3 states which have contributed maximum in the THE.
ii.States that witnessed the highest OOPE with respect to the government expenditure were UP (64%), followed by Kerala (59%) and WB (58%).
About Ministry of Health and Family Welfare(MoHFW):
Union Minister–  Jagat Prakash Nadda (Rajya Sabha – Gujarat)
Union Minister of State (MoS)- Anupriya Patel(Lok Sabha constituency- Mirzapur, Uttar Pradesh, UP); Jadhav Prataprao Ganpatrao (Lok Sabha constituency- Buldhana, Maharashtra)
