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Resource centre on India's rural distress
 
 

Low health spend alert

-The Telegraph

New Delhi: India's public spending on health is about five times lower than the world average, the Economic Survey released today has said, adding the country lacks good models of health care for replication nationwide.

The survey, in a section on social sector expenditure trends, has pointed out that the government's annual expenditure on health was 1.2 per cent of the gross domestic product in 2013-14, 1.1 per cent in 2014-15, and 1.4 per cent in 2015-16, while the world average is 5.99 per cent.

The survey has highlighted health gains such as increased life expectancy and reductions in infant and maternal mortality but pointed out that the delivery of essential services such as health and education, predominantly the preserve of state governments, remains impaired.

"On health and education, in particular, there are insufficient instances of good models that can travel widely within India and are seen as attractive political opportunities," the survey has said. "To the contrary, at the level of the states, competitive populism ... is more in evidence than competitive service delivery."

Some states such as Tamil Nadu, Kerala and Rajasthan are already running public-funded health-care delivery programmes, but public health experts and health economists are still debating over the best model to provide health care across the country - fully tax-funded, insurance-driven, or a mix of public and private sector roles.

Senior health economists say the survey has merely highlighted long-standing concerns.

"It is sometimes annoying to see the same numbers of the country's low health expenditure repeated over and over again, we have known this for years," said Vinod Annageri, the professor at the Centre for Multidisciplinary Development Research in Dharwad, Karnataka.

The former UPA government had stirred discussions about free universal health care and the Modi-led government had in 2014 signalled that it would take steps to provide free essential medicines and diagnostic services through government clinics.

But public health experts point out that the government has not made any significant policy and funding moves to support either universal free health care or free essential medicines and diagnostic services. The economic survey has pointed out that the 2014-15 expenditure was marked by a large decrease in social sector expenditure.

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