Activists Urge Significant Increase in Health Spending for Upcoming Budget

A coalition of 350 organizations and individuals has called for a significant increase in India’s health budget, urging the government to double its current allocation. This demand comes in light of a concerning trend where public health spending has declined as a percentage of GDP since the COVID-19 pandemic. Despite the National Health Policy’s commitment to allocate 2.5% of GDP to health, current spending remains alarmingly low at just 1.15%. Activists and experts warn that without substantial investment, the goal of universal healthcare in India will remain unattainable.

Declining Health Expenditure

The coalition’s statement highlights a troubling reality: the Indian government’s health expenditure has not only stagnated but has also decreased in real terms. Ravi Duggal, a sociologist and health researcher, emphasized that the government’s own commitment from the National Health Policy of 2017 requires public spending to reach 1% of GDP, which translates to approximately ₹350,000 crore. However, the current allocation falls significantly short of this target. Development economist Jean Dreze pointed out that India ranks among the lowest in public healthcare spending globally, with expenditure hovering around 1% of GDP, compared to an average of 3% in other developing nations. This chronic underfunding has led to a severe deficit in public health facilities, making it impossible to achieve universal healthcare without addressing these foundational issues.

Comparative Spending Analysis

The coalition’s statement also draws attention to India’s health spending in comparison to other countries. For instance, Bhutan’s per capita health expenditure is 2.5 times higher than India’s, while Sri Lanka’s is three times greater. Furthermore, all other BRICS nations spend 14 to 15 times more per person on health than India. Countries like Thailand and Malaysia allocate at least ten times more per capita for healthcare. This stark contrast underscores the urgent need for increased investment in India’s healthcare system to improve health outcomes and infrastructure.

Call for Policy Reforms

Activists are advocating for a restructuring of health funding to ensure that at least two-thirds of the Union Health Budget is transferred to state governments. This is crucial because states bear the majority of public health expenditure burdens. Indranil, co-convener of the Jan Swasthya Abhiyan, stated that a greater proportion of untied or flexible funding should be allocated to states, allowing them to prioritize and execute their health initiatives effectively. The current trend of declining funding for essential programs, such as the National Health Mission and nutrition initiatives, poses a significant threat to public health, especially in challenging times.

Future Implications

The coalition warns that without immediate action to increase health spending, the goals set forth in the National Health Policy will remain unfulfilled. The ongoing cuts to vital public health programs, despite their importance, reflect a troubling trend towards privatization and insurance-based models. Richa Chintan, another co-convener of the Jan Swasthya Abhiyan, noted that funding for the National Health Mission has decreased by an average of 5.5% in real terms. This decline in investment could have long-lasting effects on the public health system, making it imperative for the government to reassess its priorities and commit to a more robust healthcare budget.

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