The Economic Survey for FY24-25 highlights a significant increase in government spending on healthcare, with its share in total health expenditure rising from 29% in FY2015 to 48% in FY2022. The Total Health Expenditure (THE) for FY22 is estimated at ₹9,04,461 crore, accounting for 3.8% of GDP and ₹6,602 per capita at current prices.
Out of this total expenditure, ₹7,89,760 crore is classified as current health expenditure, while ₹1,14,701 crore (12.7%) has been allocated for capital investments in healthcare infrastructure.
A key factor in reducing out-of-pocket healthcare costs has been the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which has contributed to increased social security and primary healthcare spending, leading to savings of over ₹1.25 lakh crore. The decline in out-of-pocket expenses aligns with the government’s strategy of enhancing public health investment, reinforcing progress toward universal health coverage.
In addition to direct healthcare spending, investment in healthcare infrastructure has seen a notable rise, growing from 6.3% of total health expenditure in FY2016 to 12.7% in FY2022.
The survey also reports that the universal immunisation program has reached 93.5% national coverage as of FY24. Meanwhile, the Jan Aushadhi Scheme, aimed at providing affordable medicines, has expanded significantly, achieving record sales in 2024 and growing to over 14,000 outlets across the country.
The government’s economic strategy continues to prioritize inclusivity and citizen welfare, focusing on strengthening healthcare, education, skill development, and social infrastructure to empower people and drive sustainable growth.
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