An autonomous research institute under the Ministry of Finance


Health Expenditure by the Central Government in India: State level Distribution

Publication date

Jan, 2011


Report submitted to the Ministry of Health and Family Welfare, Government of India


Mita Choudhury, H. K. Amar Nath, Pritam Datta


This report discusses the structure and composition of health expenditure by the Centre, and highlights its distribution across States. Specifically, it focuses on the extent of expenditure through the ‘treasury’ and the ‘non-treasury’ routes and analyses their distribution across States in each of the years between 2006-07 and 2009-10. The analysis suggests that since the mid-nineties, there has been a sharp decline in Central transfers to States through the treasury route and at present, around 70 to 75 per cent of the total expenditure by the Centre at the State-level is incurred through the non-treasury route. An analysis of the distribution of expenditure across States, suggests, that the per capita expenditure under the Flexible Pools of NRHM, the single largest component in the non-treasury route, is higher in the non-high focus States than in the high focus States. In general, there is no systematic relationship of expenditure by the Centre with the performance of States in terms of health indicators.

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