Economic Survey Strongly recommends an increase in public health spending from 1% to 2.5-3% of GDP



Quick Summary
The Economic Survey 2020-21 strongly recommends a significant increase in public healthcare spending, proposing it rise from 1% to 2.5-3% of GDP. This boost is expected to substantially reduce out-of-pocket expenditure for individuals, from 65% to 35% of total healthcare costs. The report also stresses the need for agile healthcare infrastructure, government intervention to shape the market, and the continuation of key programmes like NHM alongside Ayushman Bharat Yojana. Furthermore, it highlights the importance of mitigating information asymmetry and leveraging technology, including telemedicine, to improve healthcare delivery and lower insurance premiums.

Increased healthcare spending can reduce out-of-pocket expenditure from 65% to 35% of overall healthcare spend Emphasizes that healthcare policy must not become beholden to SALIENCY BIAS; Healthcare infrastructure needs to be AGILE Actively shaping the Structure of the Healthcare Market Highlighted as a key role for the Government Recommends Continuation of NHM in Conjunction with Ayushman Bharat Yojana Sectoral regulator for regulation and supervision of the healthcare sector must b
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FAQ :

The Economic Survey strongly recommends increasing public spending on healthcare services from 1% to 2.5-3% of GDP.

It is projected to significantly reduce out-of-pocket expenditure from 65% to 35% of the overall healthcare spend.

The survey advises that healthcare infrastructure must be agile to respond to crises like pandemics.

The survey recommends the continuation of the National Health Mission (NHM) in conjunction with the Ayushman Bharat Yojana.

The survey suggests that information utilities to mitigate information asymmetry would be useful and recommends considering a sectoral regulator for the healthcare sector.

The survey advocates for harnessing technology-enabled solutions, including telemedicine, to improve last-mile healthcare service delivery.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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