Which one of the following recommended that the public health expenditure of the Union and State Governments together should be increased in a progressive manner to reach 2.5 percent of GDP by the year 2025?
- AOption (a)
The National Commission on Macroeconomics and Health, 2005
- BOption (b)
The Parliamentary Standing Committee on Health, 2022
- COption (c)
The Fifteenth Finance Commission
- DOption (d)
The Kasturirangan Committee
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Correct answer
The Fifteenth Finance Commission
Why this answer is correct
The correct answer is 'The Fifteenth Finance Commission'
Key Points
- The Fifteenth Finance Commission:
- The Fifteenth Finance Commission, which was constituted under the chairmanship of N.K. Singh, submitted its report for the period 2021–26. It made several key recommendations for the financial management of both the Union and State Governments.
- A major recommendation of the commission was to progressively increase public health expenditure. It suggested that the combined public health expenditure of the Union and State Governments should reach 2.5% of the Gross Domestic Product (GDP) by 2025.
- This recommendation aligns with global benchmarks and aims to improve healthcare infrastructure, accessibility, and outcomes in India, particularly given the challenges highlighted during the COVID-19 pandemic.
- The emphasis was on bridging the gaps in healthcare funding, enhancing primary healthcare systems, and ensuring equitable distribution of resources.
Additional Information
- The National Commission on Macroeconomics and Health, 2005:
- This commission was set up by the Ministry of Health and Family Welfare to assess the impact of health on macroeconomics and vice versa.
- It focused on identifying the economic burden of diseases and suggested investments in healthcare to improve economic productivity.
- While it emphasized increasing healthcare funding, it did not specifically recommend the 2.5% of GDP target for public health expenditure by 2025.
- The Parliamentary Standing Committee on Health, 2022:
- This committee examines issues related to health policies, programs, and funding as part of its mandate.
- In its reports, it has often highlighted the need for increased health expenditure, particularly in the context of primary healthcare and pandemic preparedness.
- However, it has not formally recommended the 2.5% GDP target for public health expenditure.
- The Kasturirangan Committee:
- The Kasturirangan Committee is better known for its work in areas such as education and environmental policy, including drafting the National Education Policy 2020 and its recommendations on the Western Ghats conservation.
- The committee has not dealt with public health expenditure or recommended the 2.5% of GDP goal for healthcare funding.
Important Points
- The Fifteenth Finance Commission highlighted the need for states to increase spending on public health, particularly for primary healthcare, which should account for at least two-thirds of total health spending.
- It also recommended the creation of a dedicated non-lapsable fund for health emergencies, known as the "India COVID-19 Emergency Fund."
- Its recommendation of 2.5% of GDP for health expenditure aligns with the National Health Policy 2017, which set a similar target to strengthen India's healthcare system.
- India’s public health expenditure has traditionally been low (around 1%–1.5% of GDP), necessitating increased investment to address healthcare challenges and improve outcomes.