Banashree Choudhury
Research Scholar, Department of Economics, Gauhati University, Guwahati, Assam, India
E-mail: banashreechoudhury38@gmail.com
Issue: Vol. 2 No. 3 (September 2026) – Anubodhan
Received: 9 September 2026 / Accepted: 17 September 2026 / Published online: 19 September 2026
DOI: https://doi.org/10.65885/anubodhan.v2n3.2026.106
Abstract
Health expenditure is an essential component of a country’s health financing system. In India, although government spending on health has increased over time, out-of-pocket expenditure (OOPE) continues to account for a substantial part of healthcare spending. This study examines the trends and growth patterns of domestic general government health expenditure (DGGHE) and OOPE in India during 2000–2023. The study employed secondary data obtained from the World Bank’s World Development Indicators. Descriptive statistics, annual growth rates and compound annual growth rates (CAGR) have been employed to evaluate changes in health expenditures per capita over the study period. The findings of the study reveal that both DGGHE and OOPE per capita increased during the study period but at an accelerated pace for DGGHE, a CAGR of 9.23% as against 4.01% for OOPE. DGGHE per capita rose from PPP US $17.75 in 2000 to PPP US $135.12 in 2023, whereas OOPE per capita rose from PPP US $61.55 to PPP US $151.95 during the period from 2000 to 2023, respectively. Additionally, the proportion of OOPE in current health expenditures also declined from 71.70% in 2000 to 43.89% in 2023, although OOPE remained a major component of health expenditure. In sum, the findings indicate that domestic general government health expenditure grew at a faster pace than OOPE, but households continued to be a significant contributor to healthcare expenditure in India.
Keywords: Domestic General Government Health Expenditure, Out-of-Pocket Expenditure, Health Financing, Compound Annual Growth Rate (CAGR), Health Expenditure
How to cite: Choudhury, B. (2026). Government and Out-of-Pocket Health Expenditure in India: Trends and Growth Patterns, 2000–2023. Anubodhan, 2(3), 125–133. https://doi.org/10.65885/anubodhan.v2n3.2026.106