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Increase in public health spending from 1% to 2.5-3% of GDP

The Economic Survey 2020-21 has strongly recommended an increase in public spending on healthcare services from 1 percent to 2.5-3 percent of GDP, as envisaged in the National Health Policy 2017.

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It notes that this can significantly reduce the Out-of-Pocket-Expenditure (OOPE) from 65 per cent to 35 per cent of the overall healthcare spend.

The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman tabled the Economic Survey 2020-21 in Parliament.

The Survey has recommended that the National Health mission (NHM) should be continued in conjunction to with Ayushman Bharat Yojana.

Drawing from the lessons learned during the ongoing global pandemic of COVID-19, the Economic Survey makes a strong case for complete adoption of telemedicine for meeting the last-mile challenges of healthcare delivery in the country.

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