Healthcare In Focus: Health Budget To Be Raised To 2.5 Per Cent of GDP, Says PM Modi

Prime Minister (PM) Narendra Modi has stated that the country is on course to increase its health expenditure to 2.5 per cent of the Gross Domestic Product (GDP) by 2025, Deccan Herald has reported. The PM also noted that women, children, and the youth will be of prime focus of government’s every policy, programme, and initiative.

India’s health expenditure currently stands at 1.16 per cent of the GDP, which is significantly less than what developed countries spend on their citizens’ healthcare. India’s per capita annual health expenditure amounted to only Rs 1,112 in 2015-16.

Also, out-of-pocket health expenditure in India currently stands at 62 per cent of total healthcare costs. “This is extremely high and leads to impoverishment of patients. In comparison, out of pocket hospital expenses in developed countries such as the US and the UK is 20 per cent and in BRICS countries about 20-25 per cent,” said IRDAI (Insurance Regulatory and Development Authority of India) Chairman, T S Vijayan.

Recognising this, PM Modi, while addressing the 2018 Partners' Forum in Delhi, noted that his government has launched Ayushman Bharat to reduce the out-of-pocket expenditure of the citizens on healthcare. Billed as the world's largest public health insurance scheme, Ayushman Bharat has been launched to provide Rs five lakh insurance cover to ten crore families (50 crores individuals).

“This number is almost equal to the population of Canada, Mexico and the US taken together. We have already provided free treatment worth Rs 700 crore to 5 lakh families under this scheme within ten weeks of its launch,” the PM stated.

Also Read: How Data-Driven Ayushman Bharat Will Unlock The Potential Of Personalised Medicine