📄 Abstract
Health expenditure plays a vital role in strengthening healthcare systems, improving population health outcomes, and promoting sustainable economic development. This study examines the trends and growth patterns of public health expenditure in India over the period 2000–2022 using secondary data obtained from the World Bank and the World Health Organisation (WHO). The analysis focuses on major indicators of health financing, including Domestic General Government Health Expenditure (GGHE) per capita, GGHE as a percentage of Current Health Expenditure (CHE), Out-of-Pocket (OOP) expenditure, GGHE as a percentage of GDP, GGHE as a percentage of General Government Expenditure (GGE), CHE as a percentage of GDP, and per capita health expenditure measured in both Purchasing Power Parity (PPP) and current US dollars. Trend analysis with linear trend lines and Compound Annual Growth Rate (CAGR) techniques was employed to examine long-term changes in these indicators. The findings reveal a consistent upward trend in government health expenditure across all major indicators during the study period. Domestic General Government Health Expenditure per capita (PPP) increased substantially from US$17.75 in 2000 to US$106.83 in 2022, while government health expenditure per capita (current US$) rose from US$3.82 to US$31.10. Similarly, the government's share in current health expenditure increased steadily from 20.68% to 39.11%, reflecting enhanced public financing of healthcare. In contrast, Out-of-Pocket expenditure declined significantly from 71.70% to 45.98%, indicating a gradual reduction in households' financial burden for healthcare services. Government health expenditure as a percentage of GDP and as a percentage of total government expenditure also exhibited positive long-term growth, demonstrating increasing fiscal commitment toward the health sector. The CAGR estimates further confirm sustained positive growth in public health expenditure indicators, while OOP expenditure recorded a negative growth rate, signifying improved financial risk protection. Overall, the results suggest that India has made substantial progress in expanding public investment in healthcare, particularly after the implementation of major health sector reforms and during the COVID-19 pandemic. Although government expenditure on health has increased considerably, the level of public financing remains modest compared with global benchmarks, indicating the need for sustained increases in public health investment. The study concludes that strengthening government health expenditure while reducing dependence on Out-of-Pocket payments is essential for achieving Universal Health Coverage (UHC), improving healthcare accessibility, ensuring financial protection, and supporting inclusive economic development in India.
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📚 How to Cite:
Ashutosh Chhotaray, Prof. Kabita Kumari Sahu , TRENDS AND PATTERNS OF PUBLIC HEALTH EXPENDITURE IN INDIA: AN ANALYSIS OF HEALTH FINANCING INDICATORS , Volume 14 , Issue 6, June 2026, International Journal of Asian Economic Light (JAEL) , Pages: 7 - 18 , DOI: https://doi.org/10.36713/epra28556