Union budget 2025: Economic Survey points to increase in health expenditure making healthcare accessible, affordable

Centre's initiatives like preventive measures, universal access to high-quality healthcare, and better public health infrastructure have made healthcare more accessible, according to Economic Survey

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The Economic Survey tabled in Parliament on Friday noted that the total health expenditure of the country between the financial years 2015 to 2022 increased from 29.0 per cent to 48.0 per cent. Inclusive economic growth is central to the vision of Viksit Bharat 2047, the survey said.

With the Delhi assembly polls scheduled for February, the health schemes offered by the BJP-ruled Centre and those by the Aam Aadmi Party government in Delhi have become an election issue, with both sides harping on their initiatives. Both Delhi and West Bengal governments have not extended the Central schemes in their states.

As per the Economic Survey, the total health expenditure (THE) in FY22 is estimated to be Rs 9,04,461 crore (3.8 per cent of GDP and Rs 6,602 per capita at current prices). Total health expenditure per capita (at constant prices) has shown an increasing trend since FY19.

Government initiatives, including preventive measures, universal access to high-quality healthcare, strengthened public health infrastructure, and advancements in medical education, have collectively contributed to making healthcare in India more accessible and affordable for all, said the survey.

According to the survey, out of the total health expenditure, current health expenditure (CHE) is Rs 7,89,760 crore (87.3 per cent of THE), and capital expenditure is Rs 1,14,701 crore (12.7 per cent of THE). “An increase in the share of capital expenditure in THE from 6.3 per cent in FY16 to 12.7 per cent in FY22 is a positive sign as it will lead to broader and better health infrastructure.”

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The survey points out that the Ayushman Bharat scheme has revolutionised healthcare by providing health coverage to the bottom 40 per cent of India’s most vulnerable populations. “The increase in government spending on health has an important implication for the reduction of financial hardship endured by households.”

As of 15 January 2025, more than 40 lakh senior citizens have been enrolled in the scheme. With insurance companies bearing the cost of medical treatment, the Ayushman scheme played a decisive role in the significant reductions observed in out-of-pocket expenditure through an increase in social security and primary health expenditure, with over Rs 1.25 lakh crore in savings recorded.

Other initiatives, such as the free dialysis scheme, have benefited around 25 lakh people. The reduction in out-of-pocket expenditure goes hand in-hand with increased public spending in healthcare, demonstrating progress towards universal health coverage.

The Economic Survey has highlighted that under Ayushman Bharat Digital Mission (ABDM) 72.81 crore Ayushman Bharat health Accounts have been created, while the e-Sanjeevani, the telemedicine service, has emerged as the world's largest telemedicine implementation in primary healthcare.

The Economic Survey further states that over 1.7 crore pregnant women and 5.4 crore children have registered on the U –WIN portal and more than 26.4 crore vaccine doses in have been tracked in real-time.

The government has also been using drones to transform healthcare in India by ensuring rapid delivery of life-saving medicines and collecting samples from remote and inaccessible areas, proving indispensable during emergencies. The project ‘i-DRONE’ was launched by the ministry of health in October 2021.

In a pointer to the state of things in the health sector, the Economic Survey says artificial intelligence has been increasingly used. In 2023, 34 per cent of healthcare organisations in India were piloting AI projects, and 16 per cent had moved their generative AI initiatives into production.

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