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Finances for Health in India: Are New Sources the Way to Go?

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  • Indrani Gupta
  • Samik Chowdhury

Abstract

The Government of India has proposed the National Health Assurance Mission (NHAM) to move the country rapidly towards universal health coverage (UHC), by providing all citizens with specified drugs, diagnostics, and services. Currently, India's public spending on health is one of the lowest in the world. Recent pronouncements from the government indicate a further cut in the health budget, indicating a serious discrepancy between policy intentions and necessary financial provisions. Against this backdrop, this paper offers two broad options to enhance fiscal space for health in India: (a) superior utilisation of the existing resource envelope through reprioritisation and reallocation within the social sector, including pooling of fragmented allocations; and (b) identification of new revenue handles for the health sector and choice of the most sustainable of these.

Suggested Citation

  • Indrani Gupta & Samik Chowdhury, 2015. "Finances for Health in India: Are New Sources the Way to Go?," Working Papers id:7573, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:7573
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Shankar Prinja & Pankaj Bahuguna & Andrew D Pinto & Atul Sharma & Gursimer Bharaj & Vishal Kumar & Jaya Prasad Tripathy & Manmeet Kaur & Rajesh Kumar, 2012. "The Cost of Universal Health Care in India: A Model Based Estimate," PLOS ONE, Public Library of Science, vol. 7(1), pages 1-9, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Health financing; fiscal space; absorptive capacity; innovation; corporate social responsibility; health cess; NHAM; UHC; public health spending; health budget; India; health sector; healthcare; growth; expenditure; social indicator.; policy interventions; social sector; reallocation.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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