Centre to raise Health Services Expenditure to 2.5% of GDP by 2025

Union Health Minister Dr. Harsh Vardhan while addressing a query during Question Hour in Rajya Sabha announced that Government has set a target to raise health services expenditure to 2.5% of country’s GDP (Gross domestic product) by 2025. He also highlighted that public expenditure on health services has increased continuously over the years and continues to increase.

Key Highlights

The government’s objective is in line with National Health Policy 2017 which envisages increasing public health expenditure to 2.5% of GDP by 2025.

The policy also recommends that State governments should spend more than 8% of their budget on health sector by 2020.

Steps taken by Government:

Under Aayushman Bharat programme ( or Pradhan Mantri Jan Arogya Yojana or National Health Protection Scheme), Government envisions setting up 1.5 lakh health and wellness centres by 2022 and out of this 18,000-19,000 have already been established. These centres will boost healthcare facilities in country’s Urban as well as rural areas.

The 3% Education Cess on personal income tax and corporation tax to is already replaced with 4% Health and Education Cess so as to cater to education and health needs of poor and rural families.

Higher Education Funding Agency (HEFA) has also started supporting infrastructure works of medical institutions.

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