The allocation of Funds for Health Sector

New Delhi: The allocation of funds for health sector is based, inter-alia, on the availability of resources and competing claims on these resources. An increase in economic growth makes available increased resources for funding the health sector. In addition to this, availability of overall resources, past utilization, requirements and absorptive capacity inter-alia guide the allocations to the health sector.

The National Health Policy 2017 proposes raising public health expenditure to 2.5% of the GDP in a time bound manner by 2025.

As per Economic Survey 2016-17 brought out by Ministry of Finance, expenditure by Government (Central and State Governments combined) on health as percentage of Gross Domestic Product (GDP) for last three years is as under:

(i) 2014-15 – 1.1%

(ii) 2015-16 – 1.3% (RE)

(iii) 2016-17 – 1.4 % (BE)

The funds allocated to Ministry of Health and Family Welfare and Ministry of AYUSH, Government of India, for last three years and current year, are as under :

(i) 2014-15 – Rs. 39,237.82 Crore

(ii) 2015-16 – Rs. 33,282.17 Crore

(iii) 2016-17 – Rs. 39,532.55 Crore

(iv) 2017-18 – Rs. 50,592.63 Crore

The Minister of State (Health and Family Welfare), Smt Anupriya Patel stated this in a written reply in the Lok Sabha here today.