IDEAS home Printed from https://ideas.repec.org/p/awe/wpaper/419.html
   My bibliography  Save this paper

Priorities in Budgetary Allocations for Health during the Fourteenth Finance Commission: Evidence from Five States

Author

Listed:
  • Indrani Gupta
  • Samik Chowdhury
  • Avantika Ranjan
  • Diwas Singh Saun

    (Institute of Economic Growth, Delhi)

Abstract

The aggregate government health spending in India is one of the lowest in the world in terms of its share in GDP. Since most of the functions of the health system are undertaken by the states, it is important for states to mobilize enough funds to sustain existing activities and undertake new ones in the health sector. A major departure from the past in the fiscal architecture took place following the acceptance by the government of the 14th Finance Commission (FFC) recommendations. A key question in this context is whether these significant changes created a disruption in the state health finances and consequently, impacted on state spending patterns across key components. This is examined for 5 selected states in the country – Bihar, Himachal Pradesh, Tamil Nadu, West Bengal and Uttar Pradesh. A brief review of the health systems indicates wide variations in inputs and outcomes, with Tamil Nadu quite far ahead in terms of health outcomes, and Bihar and Uttar Pradesh requiring significant catch up. While health spending did increase somewhat for all the states in the FFC period in real terms - most noticeably for Bihar - states seem to have little maneuvering space for new investment due to high shares of salaries and emoluments. Among other results, states have been investing reasonably on primary care, but the public health component continues to get low priority even during the FFC period for these states. The share of prevention and control of diseases in total health spending has declined for all states in these four years. Overall, while these five states have maintained their total health spending, there has been no re-prioritization within the health budget and no significant departures – transformative or detrimental - from the usual patterns of allocation during the FFC period.

Suggested Citation

  • Indrani Gupta & Samik Chowdhury & Avantika Ranjan & Diwas Singh Saun, 2021. "Priorities in Budgetary Allocations for Health during the Fourteenth Finance Commission: Evidence from Five States," IEG Working Papers 419, Institute of Economic Growth.
  • Handle: RePEc:awe:wpaper:419
    as

    Download full text from publisher

    File URL: https://iegindia.org/upload/publication/Workpap/wp419.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mcintyre, Di & Meheus, Filip & Røttingen, John-Arne, 2017. "What level of domestic government health expenditure should we aspire to for universal health coverage?," Health Economics, Policy and Law, Cambridge University Press, vol. 12(2), pages 125-137, April.
    2. Deepak Kumar Behera & Ranjan Kumar Mohanty & Umakant Dash, 2020. "Cyclicality of public health expenditure in India: role of fiscal transfer and domestic revenue mobilization," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(1), pages 87-110, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rahman, Md Mizanur & Jung, Jenny & Islam, Md Rashedul & Rahman, Md Mahfuzur & Nakamura, Ryota & Akter, Shamima & Sato, Motohiro, 2022. "Global, regional, and national progress in financial risk protection towards universal health coverage, 2000–2030," Social Science & Medicine, Elsevier, vol. 312(C).
    2. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2024. "On the effects of intergovernmental grants: a survey," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 856-908, June.
    3. Yvonne Beaugé & Jean-Louis Koulidiati & Valéry Ridde & Paul Jacob Robyn & Manuela De Allegri, 2018. "How much does community-based targeting of the ultra-poor in the health sector cost? Novel evidence from Burkina Faso," Health Economics Review, Springer, vol. 8(1), pages 1-11, December.
    4. Daniel Chukwuemeka Ogbuabor & Obinna Emmanuel Onwujekwe, 2019. "Aligning public financial management system and free healthcare policies: lessons from a free maternal and child healthcare programme in Nigeria," Health Economics Review, Springer, vol. 9(1), pages 1-10, December.
    5. Yingya Yang & Liangliang Zhou & Chongmei Zhang & Xin Luo & Yihan Luo & Wei Wang, 2022. "Public Health Services, Health Human Capital, and Relative Poverty of Rural Families," IJERPH, MDPI, vol. 19(17), pages 1-14, September.
    6. Steven F Koch & Naomi Setshegetso, 2020. "Catastrophic health expenditures arising from out-of-pocket payments: Evidence from South African income and expenditure surveys," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-14, August.
    7. Hemachandra Padhan & Deepak Kumar Behera & Santosh Kumar Sahu & Umakant Dash, 2023. "Does Corruption Hinderance Economic Growth Despite Surge of Remittance and Capital Inflows Since Economic Liberalization in an Emerging Economy, India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 426-449, March.
    8. Deepak Kumar Behera & Ranjan Kumar Mohanty & Umakant Dash, 2020. "Cyclicality of public health expenditure in India: role of fiscal transfer and domestic revenue mobilization," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(1), pages 87-110, March.
    9. Barlow, Pepita, 2020. "Global disparities in health-systems financing: A cross-national analysis of the impact of tariff reductions and state capacity on public health expenditure in 65 low- and middle-income countries, 199," LSE Research Online Documents on Economics 104107, London School of Economics and Political Science, LSE Library.
    10. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    11. Diogo Ferraz & Enzo B. Mariano & Daisy Rebelatto & Dominik Hartmann, 2020. "Linking Human Development and the Financial Responsibility of Regions: Combined Index Proposals Using Methods from Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 439-478, July.
    12. Xiaofeng Shi & Jianying Li & Fei Wang & Hasan Dinçer & Serhat Yüksel, 2019. "A Hybrid Decision-Making Approach for the Service and Financial-Based Measurement of Universal Health Coverage for the E7 Economies," IJERPH, MDPI, vol. 16(18), pages 1-20, September.
    13. Gabriela Alondra Agafitei, 2022. "The Bolivian Universal Health System and Effective Access to Healthcare: A Diagnosis," Development Research Working Paper Series 01/2022, Institute for Advanced Development Studies.
    14. Kolesar, Robert John & Pheakdey, Sambo & Jacobs, Bart & Phay, Sokchegn, 2021. "Decision time: Cost estimations and policy implications to advance Universal Health Coverage in Cambodia," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 127-145.
    15. Deepak Kumar Behera & Dil B. Rahut & Herosh T. Haridas & Shaik Husna Tasneem, 2024. "Public Versus Private Health Financing Transition in Low- and Middle-Income Countries: Exploring the Crowding-Out Effects," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 957-986, August.
    16. Jacky Mathonnat, 2024. "« Transforming Challenge into Action: Expanding Health Coverage for All » at the World Bank Group and IMF Spring Meetings 2024," Post-Print hal-04603235, HAL.
    17. Elisabeth Paul & N’koué Emmanuel Sambiéni & Jean-Pierre Wangbe & Fabienne Fecher & Marc Bourgeois, 2020. "Budgeting challenges on the path towards universal health coverage: the case of Benin," Health Economics Review, Springer, vol. 10(1), pages 1-8, December.
    18. Sameera Awawda & Mohammad Abu-Zaineh, 2019. "An Operationalizing Theoretical Framework for the Analysis of Universal Health Coverage Reforms: First Test on an Archetype Developing Economy," Working Papers halshs-02009858, HAL.
    19. Deepak Kumar Behera & Umakant Dash, 2020. "Is health expenditure effective for achieving healthcare goals? Empirical evidence from South-East Asia Region," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 593-618, June.
    20. Elisabeth Paul & Youssoupha Ndiaye & Farba Lamine Sall & Fabienne Fecher & Denis Porignon, 2020. "An assessment of the core capacities of the Senegalese health system to deliver Universal Health Coverage," ULB Institutional Repository 2013/312244, ULB -- Universite Libre de Bruxelles.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:awe:wpaper:419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/iegggin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.