The Union Health Ministry has unveiled the National Health Accounts (NHA) estimates for 2020-21 and 2021-22, marking the eighth and ninth reports in its annual series. These estimates reflect the government's increasing focus on healthcare investment and efforts to reduce the financial burden on households.

Addressing the release, Dr. V K Paul, Member (Health), NITI Aayog, praised the improved methodology for compiling the NHA estimates, which has resulted in more accurate tracking of government health expenditure. He emphasized a key achievement—the substantial drop in Out-of-Pocket Expenditure (OOPE) as a share of Total Health Expenditure (THE), which fell from 64.2% in 2013-14 to 39.4% in 2021-22. “This decline is a very positive indicator,” Dr. Paul remarked.

He also credited government schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) for generating over Rs 1 lakh crore in savings for citizens. The Free Dialysis scheme, launched in 2015-16, has also benefited 25 lakh individuals, further contributing to financial relief in healthcare.

Union Health Secretary Shri Apurva Chandra echoed these sentiments, noting the significant rise in government health expenditure alongside the reduction in OOPE. “This reflects the government’s growing emphasis on health and the positive impact of increased public investment,” he stated.

Key Highlights from the NHA Estimates

The NHA estimates, built on the globally recognized ‘System of Health Accounts (SHA), 2011’ framework, offer detailed insights into India's healthcare financial flows—tracing the sources of funds, how money is spent, and the nature of healthcare services utilized.

According to the 2021-22 estimates, government expenditure on healthcare has steadily increased, underscoring the government's focus on bolstering public health investments. The share of Government Health Expenditure (GHE) as a percentage of GDP rose from 1.13% in 2014-15 to 1.84% in 2021-22. Similarly, GHE as a share of General Government Expenditure (GGE) increased from 3.94% to 6.12% over the same period.

In terms of per capita spending, government health expenditure has tripled, jumping from Rs. 1,108 in 2014-15 to Rs. 3,169 in 2021-22. Notably, between 2019-20 and 2020-21, government health spending grew by 16.6%, followed by an unprecedented 37% surge between 2020-21 and 2021-22, driven largely by the government’s proactive response to the COVID-19 pandemic.

Reducing the Burden on Households

One of the most impactful trends highlighted in the NHA estimates is the reduction of financial hardship for households. The share of GHE in India’s Total Health Expenditure increased from 29% in 2014-15 to 48% in 2021-22. During this period, the share of Out-of-Pocket Expenditure in THE significantly dropped from 62.6% to 39.4%.

The continued decline in OOPE reflects the government’s substantial efforts to ensure financial protection and move closer to achieving Universal Health Coverage (UHC) for all citizens.

These NHA estimates offer valuable insights into the progress being made in healthcare financing, underscoring the government’s commitment to improving public health systems and easing the financial burden on households across India.