The Twelfth Five Year Plan projected to increase total public fund, plan, and non-plan on core health to 1.87 percent of GDP by the end of Twelfth Plan. The National Health Policy, 2017 envisages increasing public expenditure on health to 2.5 percent of GDP in a time-bound manner by 2025. The funds allocated to Ministry of Health and Family Welfare and Ministry of AYUSH, Government of India, for last three years and current year are:
2014–2015 – 39,237.82 crore; 2015–2016 – 33,282.17 crore;
2016–2017 – 39,532.55 crore; 2017–2018 – 50,592.63 crore
As per WHO Global Health Expenditure database 2014, the expenditure on healthcare for BRICS is China (3%), the Russian Federation (4%), Brazil (4%), and South Africa (4%) of Gross Domestic Product. The government spending on healthcare in India as a percentage of GDP has increased from 1.16 percent in 2004–2005 (actual) to 1.4 percent in 2016–2017 (BE) as per Economic Survey.
The allocation of funds for the health sector is based inter-alia, on the availability of resources and competing claims on these resources. An increase in economic growth makes available increased resources for funding the health sector. In addition to this, availability of overall resources, past utilization, requirements, and absorptive capacity inter-alia guide allocations to the health sector.