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Government Health Expenditure Reaches 1.84% of GDP, Steadily Progressing Towards 2.5% Target

Highlighting the significant increase in healthcare investment, Nadda stated that the allocation of funds has more than doubled from approximately Rs 38,000 crore in 2013-14 to around Rs 99,000 crore currently, nearing the Rs 1 lakh crore mark.

• By Newsdesk
• New Delhi
• Mar 20, 2025

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Union Health Minister JP Nadda announced on Wednesday that government spending on healthcare has climbed to 1.84% of the Gross Domestic Product (GDP), steadily progressing towards the set goal of 2.5%. The declaration was made during his response to a parliamentary discussion on the performance of the Ministry of Health and Family Welfare.

Highlighting the significant increase in healthcare investment, Nadda stated that the allocation of funds has more than doubled from approximately Rs 38,000 crore in 2013-14 to around Rs 99,000 crore currently, nearing the Rs 1 lakh crore mark.

"In 2013-14, the combined government health expenditure, including contributions from both the state and central governments, stood at 1.15% of GDP. By the time the National Health Policy was introduced, it had risen to 1.35%. Today, it has further increased to 1.84%, and we are steadily advancing towards our goal of 2.5%," Nadda affirmed.

The National Health Policy 2017 had outlined the objective of increasing government health expenditure to 2.5% of GDP by 2025, emphasizing a strengthened public healthcare system.

Strengthening Healthcare Infrastructure

The minister also highlighted the establishment of around 1.75 lakh Ayushman Arogya Mandirs across the country, which serve as the primary touchpoints for patients within the healthcare system. To ensure quality services, the government has implemented the National Quality Assurance Standards (NQAS) in selected Ayushman Arogya Mandirs.

Addressing Regional Imbalances

Under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), the government has undertaken extensive measures to mitigate regional healthcare disparities. As part of this initiative, 22 new All India Institutes of Medical Sciences (AIIMS) have been established, alongside the addition of 75,000 new government medical college seats. Furthermore, the government has prioritized the upgradation of existing medical institutions to enhance tertiary healthcare accessibility.

The steady increase in health expenditure and infrastructural investments reflect the government's commitment to bolstering the healthcare system, ensuring quality care, and promoting equitable access for all citizens. With continued efforts, the goal of achieving 2.5% of GDP in healthcare expenditure by 2025 appears well within reach.