Parliamentary Committee Recommends Raising Health Expenditure to 5% of GDP

A Parliamentary Standing Committee on Health and Family Welfare has recommended that the government increase health expenditure to approximately 5% of GDP over the next five years. This recommendation, presented to Parliament on August 7, 2026, highlights the urgent need to bridge the gap between current spending and the requirements of a robust public health system. The committee noted that while spending has grown, it remains insufficient to meet national health targets.

Data indicates that government health expenditure rose from approximately 1.35% of GDP in 2017-18 to 1.43% in 2022-23. This trajectory falls significantly short of the National Health Policy 2017 target, which aimed for 2.5% of GDP by 2025. The committee's report underscores that current funding levels are inadequate to address the growing healthcare demands of a large and diverse population.

Beyond the funding increase, the committee has proposed 368 specific reforms aimed at enhancing healthcare affordability and accessibility. These reforms focus on strengthening primary healthcare infrastructure, improving the availability of essential medicines, and streamlining the delivery of health services. The committee's report serves as a roadmap for the government to prioritize health as a core pillar of national development, aiming to ensure equitable access to quality care for all citizens.