The Hindu (Visakhapatnam)

Rise in public health spending due to States, not Centre

The Centre’s spending on health has decreased post-pandemic while States have continued to spend more

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as a percentage of GDP during the pandemic needs to be attributed to the negative and low growth of GDP, while absolute increase in expenditur­e remained modest, in real terms

More concerning is the decline in the share of resources transferre­d to the States by the Union Healthy Ministry. In FY14, threefourt­h (75.9%) of the Union spending on health was transferre­d to the States Within the ‰rst three years of the National Democratic Alliance government, the share came down to little more than half (53.4%) and declined consistent­ly to reach a new low of 43% in FY24 (Budget Estimates). The trend re ects increased centralisa­tion of ‰nancial resources on health, a subject which largely falls within the domain of States.

Launched in 2005, the NHM was a crucial interventi­on by the Union government. But expenditur­e on the scheme has mostly remained stagnant or has come down in the last seven years

Between FY14 and FY19, the spending on NHM grew at 7.4% on average, largely due to a sudden jump in FY18. During the second tenure of the NDA government, spending on NHM declined in real terms at 5.5% on average.

The Modi government’s emphasis on Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) is visible in its spending patterns. A look at the expenditur­e on various GFHIs such as PMJAY shows a steady increase in expenditur­e. Between FY15 and FY20, expenditur­e in real terms nearly doubled, growing at an average of 18% per annum. Even though the Centre draws a lot of mileage from these schemes, a bigger share of the spending is incurred by the States.

The COVID-19 pandemic had shown the cracks in India’s health system and highlighte­d the need for increased public investment in healthcare. While the States have risen up to the challenge, despite ‰nancial constraint­s, the Union government has done little.

(Chart 5). (Chart 3). (Figure 4).

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