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Public Health Expenditure Essay

1083 words - 5 pages

Definition
Health Expenditure: - Health expenditure refers to the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation. It is calculated as the percentage of a nation's GDP.
Total expenditure on health is the sum of general government health expenditure and private health expenditure in a given year, calculated in national currency units in current prices. (WHO)
Public health Expenditure:- Public expenditure consists of recurrent and capital spending from government (central and ...view middle of the document...

Health financing can be done by public, private, external source and mixing source, which has explain diagrammatically

Fig.1
Total health expenditure
Total health expenditure is the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation.

Following figure(2) shows the total expenditure on health public.

Health expenditure- Public (government)
Public health expenditure consists of recurrent and capital spending from government (central and local) budgets, external borrowings and grants (including donations from international agencies and nongovernmental organizations), and social (or compulsory) health insurance funds.

Figure 3

Health expenditure, public (% of GDP) in India was 1.20 as of 2011 and 1.3 in 2012. Its highest value over the past 16 years was 1.20 in 2011, while its lowest value was 0.94 in 2005. Public spending on health in India gradually accelerated from 0.22% in 1950-51 to 1.05% during the mid-1980s. In terms of per capita expenditure, it increased significantly from less than Re 1 in 1950- 51 to about Rs 215 in 2003-04. However, in real terms, for 2003-2004 this is around Rs 120.

The primary source of public financing is the general tax and non-tax revenues. These include grants and loans received from both internal and external agencies, which face competing demands from various ministries and departments.

The Central Government plays a catalytic role in aligning the States’ health programmes to meet certain national health goals through various policy guidelines as well as financing certain critical components of centrally sponsored programmes implemented by the State Governments.

Health expenditure- Private
 Private health expenditure includes direct household (out-of-pocket) spending, private insurance, charitable donations, and direct service payments by private corporations. The health expenditure by private sector in India was 2.67 (% GDP) as of 2011. Its highest value over the past 16 years was 3.56 in 2004.

Out-of-pocket health expenditure
Out of pocket expenditure is a part of private health expenditure. It is any direct spend by households, including gratuities and in-kind payments, to health practitioners and suppliers of pharmaceuticals, therapeutic...

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