Sharp rise in out-of-pocket health spending, 11% fall in government expenditure in FY23: Ministry report

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The increase in OOPE in 2022-23 contrasts with the declining trend recorded since 2013-14 (File photo for representative use).Showing a reversal of a multi-year downward trend, households’ out-of-pocket expenditure (OOPE) as a share of the total health expenditure (THE) of the country rose sharply to 43.4 per cent in financial year 2022-23 from 39.4 per cent in 2021-22, as per the ‘National Health Accounts Estimates for India 2022-23’ released by the Ministry of Health and Family Welfare Wednesday.As per the report, in absolute terms, OOPE increased by 7.4 per cent to Rs 3,82,629 crore in 2022-23 from Rs 3,56,254 crore in the previous fiscal year. The per capita OOPE, too, increased by 6.2 per cent to Rs 2,767 in 2022-23, from Rs 2,600 a year ago.The increase in OOPE during 2022-23 contrasts with the declining trend recorded since 2013-14, when it was estimated at 64.2 per cent of THE. After that, it declined steadily until fiscal year 2021-22, then rose in 2022-23.OOPE are expenditures households make directly at the point of receiving healthcare. “This indicates the extent of financial protection available for households towards healthcare payments,” states the report.Private health insurance expenditure also increased to Rs 81,012 crore (9.19 per cent of THE) in 2022-23 from Rs 66,975 crore (7.40 per cent of THE) in 2021-22.While OOPE increased sharply during fiscal year 2022-23, THE, which includes current and capital expenditures incurred by government and private sources, including external funds, declined. THE declined by 2.5 per cent to Rs 8,81,359 crore in 2022-23 from Rs 9,04,461 crore in 2021-22.Per capita THE, too, came down to Rs 6,373 from Rs 6,602 during this period. THE as a share of Gross Domestic Product (GDP) also came down to 3.3 per cent in 2022-23 from 3.8 per cent in 2021-22.Story continues below this adTHE constitutes current and capital expenditures incurred by government and private Sources, including external/donor funds. Current health expenditure (CHE) is Rs 7,66,814 crore (87 per cent of THE), and capital expenditures are Rs 1,14,545 crore (13.00 per cent of THE), according to the report.Capital expenditures are reported for government and other sources (Union government: Rs 50,024 crore, state governments: Rs 62,146 crore, corporations: Rs 903 crore, rest of the world: Rs 1,472 crore), the report states.As per the report, government health expenditure (GHE) dropped by 11 per cent to Rs 3,85,332 crore from Rs 4,34,163 crore in the fiscal year 2021-22. The Union government’s share in the GHE was about 36.3 per cent, while the share of state governments was estimated to be 63.7 per cent during 2022-23.The Union government’s share in GHE came down while that of the state governments increased. In 2021-22, the Union government’s share in the GHE was about 41.8 per cent while the share of state governments was about 58.2 per cent.Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read MoreStay updated with the latest - Click here to follow us on InstagramTags:health ministry