Health Expenditure Definition

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Health is a fundamental human right and a worldwide social goal and it is the level of functional or metabolic efficiency of a living being. In humans it is the general conditions of person’s mind and body, usually meaning to be free from illness and injury. Health is necessary for the realization of basic human needs and to attain the status of better quality of life (WHO 1979). The health is a major determinant of human capital and if the quality of human capital is not maintained, physical capital and natural resources cannot be properly utilized and growth could neither be sustained nor be qualitative. The health of the people depends upon the utilization of health care services and the level of health status of a person is a robust reflection…show more content…
The total health expenditure is the sum of the public and private health expenditure. It covers the provision of healthcare services (preventive and curative), family planning activities, nutrition activities and emergency aid designated for health but does not include provision of water and sanitation. Public health expenditure consists of recurrent and capital spending from government (central and local) budgets, external borrowing and grants and social health insurance funds. Private health expenditure includes direct household (out of pocket) spending, private insurance, charitable donations and direct services payments by private corporations. Expenditure on medical and public health per capita influence health status but it does not have a strong effect on reducing infant mortality, which is crucial in designing public policy to reduce excess mortality in developing economies (Kaushik Krishnan K, Kurt K Kleinand Lawrence N Arbenser, 2006).
World Health Expenditure Globally in 2012, the total expenditure on health was about US$6.5 trillion. Total global expenditure for health per person per year was US$948 among these USA posses the highest total spending per person per year of US$8362 and Eritrea possesses the lowest position (US$12). The share of the government in health spending varies
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The private sector provides 80 percent of the health care services and only 20 percent are provided by the government (www.buyusa.gov/india). The private health sector predominates in the provisioning of curative services. India’s private health sector accounts for about 80 per cent outpatient treatments for both rich and poor, more than 55 percent of all in-patient admissions or hospitalization i.e. curative services, 40 per cent of prenatal care, 55 per cent of institutional deliveries and as low as 10 per cent of immunizations delivered. It provides 40 per cent of hospitalizations for the poor and 60 per cent for the privileged (Mukhopadhayay Debes, 2006). The provision of health care services will improve the physical and mental developments of the human being.
Health expenditure in India
The general government (central and sate) expenditure on health was 1.36 percentage of the GDP in 2012-13 estimates. Health expenditure, public (% of GDP) in India was 1.28 as of 2013. Its highest value over the past 18 years was 1.28 in 2013, while its lowest value was 1.00 in 2005. Health expenditure, private (% of GDP) in India was 2.69 as of 2013. Its highest value over the past 18 years was 3.56 in 2004, while its lowest value was 2.65 in 2012.
WHO's Ranking of the India's Healthcare

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