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Does More Funding Mean Better Health? A State-Level Analysis of Public Health Expenditure in India

In: Proceedings of the International Conference on Policies, Processes and Practices for Transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)

Author

Listed:
  • Vivek Babbar

    (Christ (Deemed to be) University, Research Scholar, Economics
    Zakir Husain Delhi College (Evening), University of Delhi, Assistant Professor)

  • Jitender Bhandari

    (Christ (Deemed to be) University, Associate Professor, Economics)

Abstract

In an effort to enhance government health expenditures and improve state-level health facilities, the Central Government of India adopted the Millennium Development Goals (MDGs) in 2000, launched the National Health Mission (NHM) in 2013, and most recently implemented the National Health Policy (NHP) in 2017. This study looks at how public health spending affects important health outcomes, such as the infant mortality rate, neonatal mortality rate, fertility rate, and malaria cases. It takes into account per capita income and spending on water supply and sanitation. The research examines 16 major states from 2000 to 2021. Additionally, it compares the effects of public health spending in both high-performing and under-performing states. The study used secondary data from the Sample Registration System (SRS), Economic Political Weekly Research Foundation (EPWRF), and the annual RBI state finances report. Based on the Hausman test, the study uses panel fixed-effects and random-effects models where suitable. Empirical findings show that overall public health spending decreases malaria cases, infant mortality, and neonatal mortality rates. The study also finds no significant impact between Public health spending and health outcomes, especially in under-performing states. Indian states should boost capital health spending to improve health infrastructure and consider public-private partnerships. This is important for achieving better health outcomes. This study provides key suggestions for shaping public health policy in developing countries.

Suggested Citation

  • Vivek Babbar & Jitender Bhandari, 2025. "Does More Funding Mean Better Health? A State-Level Analysis of Public Health Expenditure in India," Advances in Economics, Business and Management Research, in: Anuradha Jain & Sachin Gupta (ed.), Proceedings of the International Conference on Policies, Processes and Practices for Transforming Underdeveloped Economies into Developed Economies (P, pages 163-179, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-894-3_12
    DOI: 10.2991/978-94-6463-894-3_12
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