**Executive Summary**
This document presents the Ministry of Health and Family Welfare's (MoHFW) response to an unstarred question regarding budget allocation for the health sector, answering when questioned regarding the national health policy and targets. The response outlines progress towards the National Health Policy's goal of reaching 2.5% of GDP by 2025. The document also details government spending and budget increases, including grants through local governments.
**Key Points / Main Content**
* **National Health Policy Targets:**
* The National Health Policy, 2017, envisions public investment in health to reach 2.5% of GDP by 2025.
* **Government Health Expenditure (GHE) Trends:**
* Government spending on health as a percentage of Total Health Expenditure (THE) increased from 29.0% in 2014-15 to 48% in 2021-22.
* GHE as a percentage of GDP increased from 1.13% in 2014-15 to 1.84% in 2021-22.
* GHE as share of GDP during financial year 2019-20, 2020-21, and 2021-22 was 1.35, 1.60 and 1.84 respectively
* **Budget Allocation Increases:**
* The budget allocation for the Department of Health & Family Welfare (DoHFW) increased by 102.64%, from Rs. 47,353 crore in 2017-18 (BE) to Rs. 95,957.87 crore in 2025-26 (BE).
* The 15th Finance Commission provided Rs. 70,051 crore in grants for health through local governments for the grant period from 2020-21 to 2025-26.
* **Ministry Initiatives:**
* MoHFW has engaged with States to prioritize allocation to the health sector, aiming to enhance their health budgets to at least 8% of the total State budget.
**Impact Analysis**
**Stakeholder: Ministry of Health and Family Welfare (MoHFW)**
**Impact**
The MoHFW is responsible for prioritizing allocation to the health sector, enhancing health budgets at the state level, and achieving the goals of the National Health Policy.
**Action Required**
Continue to engage with states to enhance health budgets and monitor progress toward achieving the 2.5% of GDP target by 2025.
**Stakeholder: State Governments**
**Impact**
States are expected to prioritize allocation to the health sector and enhance their health budgets to at least 8% of their total State budget.
**Action Required**
Increase the allocation to the health sector in their budgets.
**Stakeholder: Local Governments**
**Impact**
Local governments are recipients of grants for health provided by the 15th Finance Commission.
**Action Required**
Utilize the received grants for health related purposes.
Key Entities Referenced
Ministry of Health and Family Welfare: The primary government body responsible for health and family welfare policies and programs.
National Health Policy, 2017: A key policy document setting targets for public investment in health, specifically aiming to reach 2.5% of GDP by 2025.
15th Finance Commission: Provided grants for health through local governments during the grant period from 2020-21 to 2025-26.
National Health Accounts Estimates: Used to track and measure government spending on health as a percentage of Total Health Expenditure and GDP.
GOVERNMENTOFINDIA
MINISTRYOFHEALTH AND FAMILYWELFARE
DEPARTMENT OFHEALTH AND FAMILYWELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1071
TOBE ANSWERED ON 5TH DECEMBER, 2025
BUDGETALLOCATIONFORHEALTHSECTOR
1071.SHRI VIJAYKUMAR HANSDAK:
Will the Ministerof HEALTH AND FAMILYWELFAREbe pleasedtostate:
(a) the target set by the National Health Policy with regard to the allocation of funds for
healthsector inthe country;
(b) the details regarding Budget Estimates (BE) vis-a-vis Actual Expenditure (AE) on health
sector anditsutilization inpercentageterms, year-wise;
(c) whether the Government has any plans to enhance resources for the health sector for
improving the healthcare to global standards and in proportion to the rate of population
growth; and
(d) if so, the detailsthereofand if not,the reasons therefor?
ANSWER
THE MINISTER OFSTATE IN THE MINISTRYOFHEALTH & FAMILYWELFARE
(SHRIPRATAPRAO JADHAV)
(a)to(d): As perthe National Health Policy,2017,public investment inhealthisenvisioned to
reach 2.5% of GDPby 2025. The Government initiatives inthis direction are evidentfrom the
National Health Accounts Estimates in India, where there has been increase in Government
spending on health as percentage of Total Health Expenditure (THE), which was 29.0% in
2014-15 and 48% in 2021-22. Correspondingly, Government Health Expenditure (GHE) as
percentage of GDP has increased from 1.13% in 2014-15 to 1.84% in 2021-22. GHE as share
of GDPduring from FY2019-20 toFY2021-22isgiveninthe following table:
FY GHE asa % of GDP
2019-20 1.35
2020-21 1.60
2021-22 1.84
The Ministry of Health and Family Welfare (MoHFW) has taken up with States to prioritize
allocationtohealth sector andenhancetheirhealthbudgetsat least by 8% of totalStatebudget
toreachthe goal asenvisaged.The budget allocation for Department of Health & Family Welfare (DoHFW) has increased
by102.64%, from Rs. 47,353crore in2017-18 (BE) toRs. 95,957.87crore in2025-26 (BE).
Further, the 15th Finance Commission, for the grant period from 2020-21 to 2025-26, has
provided Rs. 70,051 crore Grants for health through the Local Governments. Government is
makingcontinuousefforts toincrease allocationinhealth budget.
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