Indian Government’s Healthcare Spending Plan for 2019 – Part 1

In February 2019, the ruling government announced a 16.65 percent increase in its allocation for the health sector as part of the Interim Budget 2019, seeking Parliament’s approval for expenditure totalling to Rs 96,139.27 crore on healthcare. Let’s have a 10-point overview of the government’s healthcare spending plan for the year:  

  1. Budget documents released by the government shows a total of Rs 96,139.27 crore which outlays of Rs 3,374.65 crore for the Department of Health Research, Rs 90,689.86 crore for the Department of Health and Family Welfare, and Rs 2,254.76 crore for the Ministry of AYUSH.
  2. The combined outlay is a massive 16.65 percent more than the amount budgeted for 2018-19, which was Rs 82,415.8 crore as well as a significant 9.97 higher than the Revised Estimates Rs 87,421.74 crore, which was the actual spending of the government.
  3. The Centre plans expenditure of Rs 33,199.65 crore for Medical and Public Health out of the outlay of Rs 94,064.51 crore for the Ministry of Health and Family Welfare, and give Rs 43,585.35 crore as grants-in-aid to the governments of states and union territories.
  4. For the healthcare sector of northeastern India, the Ministry has also made an outlay of Rs 6,440.52 crore, a 6.36 percent more than what the government spent in 2018-19 and 56 percent more than the Budget estimates announced last year.
  5. The Pradhan Mantri Jan Arogya Yojana (PMJAY, widely referred to as ‘Ayushman Bharat’), the Modi government’s flagship healthcare initiative received an allocation of Rs 6,400 crore, which is an increase of Rs 4,000 crore.

Keep watching this space for more.

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