H man Development in ndia              20.19
     on pharmacies accounted for 29 percent of CHE       social indicators. An overall assessment of social
     by both health care providers (government and       sector expenditures in terms of achievements
     private).                                           shows that wide gaps still exist in educational and
           In a developing country like India, incurring health outcomes and there is need for substantial
     higher levels of Out of Pocket Expenditure (OoPE)   improvement and the need to remove inequalities
     on health adversely impacts the poorer sections     in the country.
     and widens inequalities. Although, OoPE has               The latest data18 regarding General
     declined approximately seven percentage points      Government (i.e., Centre plus States) expenditures
     during the period 2004-05 to 2014-15, its share     of India on the “social sector” for the year 2017-
     is still at 62 per cent as per NHA 2014-15.         18 (BE, i.e., Budget Estimates) are as given below:
           Diagnostics are an important part of the            (i) Total expenditure—26.4 per cent of the
     health care system that provide information                     GDP (26.7 per cent in previous year).
     needed by service providers to make informed             (ii) Expenditure on social services— 6.6 per
     decisions about healthcare provision related to                 cent of GDP (6.5 per cent in the previous
     treatment and management. Limited affordability                 year).
     and access to quality medical services are among       (iii) Expenditure on education—2.7 per cent
     the major challenges contributing to delayed or                 of GDP (2.6 per cent in the previous
     inappropriate responses to disease control and                  year).
     patient management. The findings of Household           (iv) Expenditure on health—1.4 per cent of
     Health Expenditure survey in India indicate that                GDP (1.5 per cent in the previous year).
     about 10 per cent of OoPE on health was spent by
     households on diagnostics (including medicines
                                                            PolIcY suGGestIons
     and diagnostic test as part of package) during
     2013-14.                                            Social infrastructure has positive externalities. It
           Meanwhile, the Government announced           has a significant role in the economic development
     (Union Budget 2018-19 ) to launch a flagship        and welfare of a country. It is empirically proven
     National Health Protection Scheme (NHPS). The       and widely recognised that education and health
     world’s largest government funded health care       impact the growth of an economy. Investing
     programme aims to cover over 10 crore poor          in human capital by way of education, skill
     and vulnerable families (approximately 50 crore     development, training and provision of health
     beneficiaries) providing coverage upto Rs. 5 lakh   care facilities enhances the productivity of the
     per family per year for secondary and tertiary care workforce and welfare of the population. In this
     hospitalisation.                                    regard, contemporary documents suggest the
                                                         following actions19 for the governments in the
        socIAl sector exPendIture                        country:
     India’s expenditure on social sectors has not         18.    Latest data from the Reserve Bank of India quoted by
                                                                  the Economic Survey 2017-18, MoF, GoI, N. Delhi,
     reflected a major increasing trend during the past           Vol. 2, p. 168.
     few years (2008-2016), an increase in expenditure     19.    The suggestions are based on the documents—World
     per-se may not always guarantee appropriate                  Happiness Report-2015 (SDSN, UNO); World
     outcomes and achievements. The efficiency of                 Development Report- 2015 and 2016 (World Bank);
                                                                  Economic Survey 2015-16, 2016-17 and 2017-18 (GoI);
     expenditure incurred so far can be assessed by               India Development Report-2017; and the NITI Aayog
     the performance of social sectors through various            (GoI).