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New Delhi: The Economic Survey 2025, presented by Finance Minister Nirmala Sitharaman in Parliament on Friday, highlighted a significant increase in health expenditure, reaching Rs 6.1 lakh crore in FY25. This marks a substantial growth from Rs 3.2 lakh crore in FY21, with a compound annual growth rate (CAGR) of 18 per cent.
The survey underscored the critical role of health in fostering economic stability and prosperity. “Health is a crucial component of human capital and a valuable asset for a prosperous and stable economy. It boosts productivity, reduces healthcare needs, enhances life expectancy, and supports social development,” the report stated.
India’s Growing Healthcare Emphasis
With India emerging as an economic powerhouse, the survey emphasized the importance of prioritizing healthcare. Government initiatives such as preventive measures, universal access to quality healthcare, enhancements in public health infrastructure, and advancements in medical education have collectively contributed to making healthcare more accessible and affordable.
Citing the latest National Health Accounts, the survey noted a consistent rise in Total Health Expenditure (THE) since FY19. In FY22, THE was estimated at Rs 9,04,461 crore, representing 3.8 per cent of GDP and Rs 6,602 per capita at current prices.
Increased Capital Expenditure in Healthcare
One of the positive developments highlighted in the survey is the increasing share of capital expenditure in THE, which rose from 6.3 per cent in FY16 to 12.7 per cent in FY22. This increase is expected to lead to the expansion and enhancement of healthcare infrastructure across the country.
Government spending on health has also played a crucial role in alleviating financial burdens on households. Between FY15 and FY22, the share of Government Health Expenditures (GHE) increased from 29.0 per cent to 48.0 per cent, while out-of-pocket expenditure (OOPE) significantly declined from 62.6 per cent to 39.4 per cent. This shift reflects an improvement in financial protection for individuals seeking medical care.
Conclusion
The Economic Survey 2025 underscores the government’s commitment to strengthening India’s healthcare system. The notable rise in healthcare expenditure and increased focus on infrastructure development indicate a positive trajectory toward a more robust and inclusive healthcare framework.
Disclaimer: The information presented in this article is based on the Economic Survey 2025 as tabled in Parliament. Figures and statistics are subject to verification through official government sources. Readers are advised to refer to the full survey for comprehensive details.
