This document discusses the relationship between health expenditure and development. It defines health and development, noting that development expands people's freedoms and capabilities. Health contributes to basic capabilities. The document reviews India's progress on Millennium Development Goals like reducing child mortality, improving maternal health, and combating diseases. Figures show India has reduced its under-5 mortality rate, infant mortality rate, and maternal mortality ratio over time, though it has not fully achieved all Millennium Development Goal targets. The document concludes that increased health expenditure can lead to efficient, equitable health services; better health and human capital; less poverty; and improved economic development.

1. HEALTH EXPENDITURE AND
DEVELOPMENT
Arvind Kumar Yadav
Regd. No-15Mphec08
M.Phil. Economics
Central University of Punjab, Bathinda

2. Introduction:
Public Health Expenditure on Health has
not only been recognised in fighting with
measure diseases like HIV/ AIDS,
Tuberculosis, Malaria, meeting the
Millennium Development Goals
(MGDs), Reducing Poverty but also
important for Industrial and Economic
Development of a country (UN,2010).

3. Some Related Definition of Health:
“Good health is one of the man’s
most precious assets”. Economist
consider Health as Human Capital
for a long time. Fuchs(1966)
 “ A state of complete Physical,
Mental and Social well being and
not merely the absence of disease
and infirmity” (WHO, 1948).

4. Relationship between Health Expenditure and
Development
Development is a process of enlarging people’s
choice.
Such choice like
• healthy life
• Acquired knowledge to greater social,
economic and political freedom.
• Opportunities to be creative and productivity.
• Enjoy personal self respect.

5. Basic indicators of Development
1. real income
2. Health.
3. Education.
 Development is not only the growth in
income, wealth or consumption but also
the expansion of Human capabilities.

6. According to prof. Sen (1985) “health contributes to a
person’s basic capabilities to function.
Development has to be more concerned with enhancing the
lives we lead and freedoms we enjoy.
For Sen “well being” means being well in the sense of being
healthy, well nourished or highly literate and more broadly
having freedom of choice.

7. Millennium Development Goals and India

8. Target 1 : Eradicate extreme poverty and hunger.
Target 2 : Achieved Universal Primary Education.
Target 3 : Promote Gender equality and empowerment of women.
Target 4 : Reduced child mortality.
Target 5 : Improve maternal health.
Target 6 : Combat HIV/ AIDS, malaria and other diseases.
Target 7 : Ensure environmental sustainability.
Target 8 : Develop a Global partnership for Development.

9. Objective of the study
1. To analyse the pattern of Health Expenditure in India.
2. To examine the Health status over a period of time.

10. Database and methodology
1. Ministry of health and family welfare.
2. Census of India, Registrar General of India.
3. Human Development Reports.
4. Reports of planning commission.
5. Economic survey, Government of India.
6. World health reports.
7. National accounts statistics.
8. Sample Registration System (SRS).

13. Fig-2, as a percentage of total health
expenditure
Source: planning commission

14. Fig-3Trend in under 5MR
Source: NFHS, SRS

15. Fig-4, trend in IMR
Source: Sample Registration System, Officer of Registrar
General of India

16. Fig-5, trend in Maternal Mortality Ratio
Source: Sample Registration System, Officer of
Registrar General of India

17. Fig-6, LEB
www.data.worldbank.org

18. Fig-7, CDR & CBR
Source: Ministry of health and family welfare

19. Efficient,
equitable and
high quality
health
services.
Better health
status.
Better human
capital
Less poverty.
Improved
economic
development.

20. Main Finding
U5MR reduced to 125 in 1990 to 49 in 2013, it is narrow to
42 who is the target of MDGs.
The IMR reduced to 80 (1990) to 40 in 2013, and the target
is 27 in 2015. now some what closed to this Goals.
The Maternal mortality ratio is 437 in 1990, reduced to 167
in 2011-13, but the target was 109.
The LEB increased 50 in 1990 to 66 in 2010.
Death rate is 28 in 1995 to reduced 21 in 2010.