Role of government health expenditure in achieving India's sustainable development goals

Abstract

To achieve the Sustainable Development Goals, the Government of India has taken several steps to improve health services. Public spending plays a key role in achieving the goals of good health and well-being. While India’s national health expenditure is 2.1% of GDP in FY23 and 2.2% in FY22, against 1.6% in FY21 as per the economic survey 2022-22. Various financial reforms were undertaken to improve the fiscal capacity of states. However, India’s spending on health was not adequate or sustainable. However, the healthcare expenditure in India has neither been sufficient nor sustainable. The paper highlights public healthcare expenditure and challenges to revenue generation and mobilization by the States. There has been a huge decline in the revenue-generating ability of the states from 1998-99 to 2020-21 which has reduced the fiscal autonomy of the states by making them dependent for 47% of their resources on the Centre. This declining fiscal autonomy of the states and increasing dependence on the centre for resources affect the public expenditure on healthcare which primarily is the subject matter of the state list. Thus, the paper suggests the need and ways for sustainable healthcare financing in India.