National Health Account estimates 2021

The Union Health Ministry has released the National Health Account (NHA) estimates for India for the years 2020-21 and 2021-22. These reports are part of an annual series that tracks how health money flows through the system. The estimates are important because they show how much the government is spending on healthcare and how this spending is affecting people across the country. The NHA estimates also help in comparing India’s healthcare spending with other countries.

Big Improvements in Health Spending

Dr. V K Paul, a health expert and Member of NITI Aayog, said that the way the government calculates the NHA estimates has improved over the years. This has made the data more reliable. One of the key points he highlighted is the significant drop in Out-of-Pocket Expenditure (OOPE), which is the money people spend directly on their health needs. This spending has decreased from 64.2% in 2013-14 to 39.4% in 2021-22. This means that more people are spending less of their own money on healthcare because the government is covering more costs.

Dr. Paul also mentioned that programs like Ayushman Bharat PMJAY have saved over Rs 1 lakh crore for Indian citizens. Other programs, like the Free Dialysis Scheme, have benefited over 25 lakh people since it was introduced in 2015-16.

Government Health Spending is Going Up

The Union Health Secretary, Shri Apurva Chandra, said that the government is spending more money on health each year, while the amount of money people need to spend from their own pockets is going down. This is a good sign because it means the government is focusing more on health.

The NHA estimates are based on international standards, which makes it easier to compare how India is doing with other countries. The estimates show how health money is spent, where it comes from, and how healthcare is delivered.

Government Health Spending and GDP

The 2021-22 NHA estimates show that the government is spending more on healthcare, reflecting its commitment to public health. The share of Government Health Expenditure (GHE) in the country’s GDP has increased from 1.13% in 2014-15 to 1.84% in 2021-22. This means that more money from the overall economy is going into health services.

Similarly, when we look at the General Government Expenditure (GGE), the percentage spent on health has also increased. In 2014-15, health spending made up 3.94% of GGE, but by 2021-22, it had grown to 6.12%.

Government Health Expenditure Triples

On a per capita basis (how much the government spends per person), the spending has tripled between 2014-15 and 2021-22. In 2014-15, the government was spending Rs. 1,108 per person on healthcare, but by 2021-22, this amount had jumped to Rs. 3,169.

In just one year, between 2020-21 and 2021-22, government spending on health grew by an impressive 37%, largely because of the need to deal with the COVID-19 pandemic. The government took an active role in making sure there was enough money to fight the pandemic and keep healthcare services running smoothly.

Reducing Out-of-Pocket Expenditure (OOPE)

The increased spending by the government has helped reduce the financial burden on families. Between 2014-15 and 2021-22, the share of GHE in Total Health Expenditure (THE) increased from 29% to 48%. During the same period, the Out-of-Pocket Expenditure (OOPE) that people have to pay for their health services dropped from 62.6% to 39.4%.

This means that fewer people have to dig into their own pockets to pay for health services, thanks to the government’s increased focus on health programs. The decline in OOPE is a clear sign of the government’s efforts to provide financial protection to its citizens.

More Social Security in Health

Another positive trend is the increase in Social Security Expenditure (SSE) on health. This includes programs like government-funded health insurance and medical reimbursements for government employees. It also covers other social health insurance programs. The share of SSE in Total Health Expenditure (THE) has grown from 5.7% in 2014-15 to 8.7% in 2021-22.

This increase means that more people can get healthcare services without having to worry about large costs. The government’s social security programs make sure that people don’t face financial hardships when they need essential medical services.

Health Programs Are Helping People Save Money

The Ayushman Bharat PMJAY scheme is one of the most successful health programs in India. It has saved people more than Rs 1 lakh crore by helping them access free or low-cost healthcare services. Additionally, the Free Dialysis Scheme has provided much-needed care to 25 lakh people since it was launched.

These programs are part of the government’s effort to reduce healthcare costs for ordinary people, making it easier for them to get the treatment they need without worrying about the financial burden.

Government’s Efforts to Improve Health System

The NHA estimates for 2021-22 show how committed the government is to improving healthcare in India. By spending more on health services and reducing the amount people need to spend out-of-pocket, the government is working toward a system where everyone can access affordable healthcare.

The increase in government health expenditure and the decrease in out-of-pocket expenses both point to a future where more people can get the care they need without facing financial difficulties. This progress is especially important for achieving Universal Health Coverage in India.

Conclusion

The latest NHA estimates highlight that the government is taking significant steps to improve the healthcare system in India. With a focus on increasing public health spending and reducing the financial burden on citizens, the government is moving closer to its goal of providing affordable and accessible healthcare to all.

As government health programs continue to grow, the hope is that more people will benefit from these services, leading to better health outcomes and a healthier population overall.

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