360° UPSC Mains Analysis
Sharp rise in out-of-pocket health spending, 11% fall in government expenditure in FY23: Ministry report
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Locations
On the Map
India
Climate & Geology
India experiences a tropical monsoon climate with four distinct seasons, heavily influenced by the Southwest and Northeast monsoons. Geologically, it sits on the Indian Plate, which is seismically active along the Himalayan collision zone, making northern and northeastern regions prone to earthquakes, while coastal states face high tropical cyclone risks.
Physical Context
India is situated in South Asia, bounded by the Himalayas in the north, the Arabian Sea to the west, the Bay of Bengal to the east, and the Indian Ocean to the south. The southern peninsula is dominated by the Deccan Plateau, flanked by the Western and Eastern Ghats, which create distinct regional microclimates and geographical barriers to healthcare access.
Resource Significance
The country possesses rich mineral resources (coal, iron ore, bauxite) and diverse agricultural zones, supporting a massive agrarian economy. Its strategic location along major Indian Ocean sea lanes of communication (SLOCs) makes it a vital hub for global trade, pharmaceutical manufacturing, and medical tourism.
Sources consulted
Institutions
Acts & Statutes
Judicial Precedents
Governance Framework
Under the Seventh Schedule of the Constitution, 'Public health and sanitation; hospitals and dispensaries' is placed under Entry 6 of List II (State List), making health primarily a state responsibility. However, the Union government plays a significant role in policy formulation and funding, as reflected in the Union's 36.3% share and the States' 63.7% share in Government Health Expenditure (GHE) for FY23.
Constitutional Articles
Background
The historical root of India's public healthcare challenges lies in the colonial era, where health services were primarily designed to protect British military and administrative personnel, leaving the general population underserved. The landmark Bhore Committee (Health Survey and Development Committee) in 1946 recommended a comprehensive, state-funded, three-tiered healthcare system to integrate preventive and curative care. During the Constituent Assembly debates, health was placed under the State List (Entry 6 of List II) of the Seventh Schedule of the Constitution of India, establishing primary responsibility with state governments while leaving the Union with limited direct legislative control.
Key Events
Policy Evolution
Post-independence, India's health policy evolved through three major National Health Policies (NHP) in 1983, 2002, and 2017. The NHP 1983 aimed for 'Health for All' by 2000 through primary healthcare networks, while NHP 2002 focused on decentralization and private sector participation. The NHP 2017 marked a paradigm shift by targeting an increase in government health expenditure to 2.5% of GDP by 2025 and aiming to progressively reduce out-of-pocket expenditure (OOPE).
Historical Parallels
The post-pandemic decline in public health spending in FY23 mirrors the fiscal consolidation phase of the early 1990s post-liberalization. During that period, structural adjustment programs led to a stagnation in social sector spending, causing a rise in private healthcare reliance and out-of-pocket expenditure before being corrected by the National Rural Health Mission in 2005.
Freedom Movement Link
The demand for state-funded universal healthcare was a key agenda of the nationalist movement, as seen in the National Planning Committee (1938) established by Subhas Chandra Bose and chaired by Jawaharlal Nehru, whose Sub-Committee on National Health (1947) advocated for medicine to be organized as a free state activity.
Ecology Impact
While not directly impacting physical ecosystems, the reduction in public health expenditure weakens the 'One Health' framework, which integrates human, animal, and environmental health. This compromises surveillance and response systems for zoonotic diseases emerging from degraded forest ecosystems and wildlife-human interfaces.
Science & Tech Angle
The intersection of environmental health and public health relies on advanced epidemiological modeling, GIS-based mapping of climate-sensitive disease vectors, and wastewater-based epidemiology (WBE). Strengthening these technological interventions requires robust public funding, which is constrained by declining government health expenditure.
Climate Change Link
Climate change exacerbates the burden of vector-borne, water-borne, and heat-related illnesses in India. A decline in government health expenditure coupled with rising out-of-pocket expenses (OOPE) to 43.4% of Total Health Expenditure (THE) in FY23 disproportionately impacts vulnerable communities facing climate-induced health shocks, undermining climate resilience and adaptation efforts.
Sustainable Development
Directly impacts SDG 3 (Good Health and Well-being) and its integration with SDG 13 (Climate Action) and SDG 11 (Sustainable Cities and Communities). The decline in Total Health Expenditure (THE) to 3.3% of GDP in FY23 and the rise in OOPE hinder the achievement of Universal Health Coverage (SDG Target 3.8) amid growing environmental and climate-induced health risks.
International Frameworks
Sources consulted
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