Economic Survey recommends higher investment in health

NEW DELHI: Underlining the importance of improving efficiency in healthcare delivery services and capitalize on its demographic dividend, the

Economic Survey

2015-16 recommended higher investment in the sector.

“There are innumerable challenges in the delivery of efficient health services in India given the paucity of resources and the plethora of requirements in the health sector,” the survey, tabled in the Parliament by Finance Minister Arun Jaitley on Friday, said.

According to the survey, India spends on an average about 3.4 percentage points less vis-a-vis comparable countries on health and education. Moreover, there has not been any significant change in the expenditure on health as a proportion of GDP, which has remained stagnant at less than 2% per cent during 2008-09 to 2014-15.

However, the survey pointed that an increase in expenditure may not always guarantee for appropriate outcomes. Therefore, highlighting a need for efficient expenditure.

Recommending a higher investment on health, the survey puts immunization coverage of children, maternal health, declining role of public health delivery systems and the lack of adequate skilled personnel as the sector’s main challenges at present.

The total expenditure on social services, including health and nutrition, only increased to 7% of the GDP during 2014-15 from 6.5% in 2013-14, data from the survey shows. Even expenditure on health as a percentage of total expenditure on social services only increased marginally to 19.5% in budgetary estimates of 2015-16 from 19.3% in 2014-15 revised estimates. In 2013-14, expenditure on health was 18.6% of the total spend on social services.

“Lack of access to affordable and quality health and educational facilities leads to economic impoverishment and lowers potential human capabilities for many,” the survey states.

The Economic Survey 2015-16 recommended leveraging public and private investments to strengthen the delivery of public health services and infrastructure facilities.

Highlighting the need for an all inclusive healthcare policy, the survey said, “Economic development needs to be inclusive by involving all sections of society, deprived and marginalized groups like women and children, scheduled tribes, scheduled castes, the differently abled and senior citizens.”

The survey also emphasized on the need to improve investment in "human capital" in order to better productivity of the population.