India has one of the highest out of pocket expenditure (OOP) on health. Global evidence on health spending shows that unless a country spends at least 5–6% of its GDP on health and the major part of it is from government expenditure, basic health care needs are rarely met. In India, the figure stands at 1.15 percent of the GDP and the government expenditure merely account for 30 percent of the current health expenditure – the lowest among the BRICS nations. Subsequently, some people scare off from using health services or from continuing treatment because they cannot afford to pay. People who use services may need to cut spending on basic needs such as food, clothing, housing and children’s education to meet health costs.

 

Source: World Bank Data

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