The government needs to increase annual expenditure on healthcare. The funds allocated to the Ministry of Health and Family Welfare (MoHFW) for FY 2022-23 amount to Rs. 86,200.65 crores, merely 0.23% higher than the allocation in FY 2021-22. Practically, the actual spending is even less than the budget estimates.
The deficiencies in healthcare infrastructure that have been exposed post-Covid demonstrate how underfunded India’s healthcare sector is. The Economic Survey of 2021-22 noted an increase in health expenditure to 2.1% of the GDP in 2021-22. When compared to the developed countries of the world and countries experiencing fast economic growth, India ranks significantly lower. For instance, Japan and China spend 9.2% and 2.9% of their GDP respectively. To create a robust healthcare system, achieve public health goals, and meet the healthcare needs of the population, India needs skilled healthcare professionals and the development of the public health infrastructure, all of which require much more funding.