Insisting that increasing the budget allocation for health and family planning is of "utmost concern", Population Foundation of India (PFI) has said low spending by the country in the sector has caused growing inequities, insufficient access and poor quality of healthcare services.
"India spends just 1.3 per cent of its GDP on healthcare. This figure is much lower compared to BRICS countries - Brazil spends around 8.3 per cent, Russian Federation 7.1 per cent and South Africa around 8.8 per cent.
PFI said the 12th five year plan recommends increasing public expenditure on health to 2.5 per cent of GDP by 2017.
Between 2015-16 and 2016-17, the government's allocations for Health Ministry increased by 13 per cent but the share of National Health Mission in the Ministry's budget declined to 48 per cent.
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Trends in budget allocations indicate that percentage share to family planning has remained unchanged between 2013-14 and 2016-17 -- at 2 per cent of the total Health Ministry's budget.
"Investing in health is critical for achieving the economic development goals. The health sector, which drives domestic demand for health care, has the potential of providing new jobs. The lack of skilled workforce is stark in the health sector. Increased investment will also bring down the prices of health services and assist in sustaining the medium term inflation target of four per cent.
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