Context:
The Economic Survey 2024-25 presents a positive side to the fact that greater social sector expenditure has resulted in reduced healthcare expenditure increased education enrollment and achievement of health standards at par with the global ones.
Social Sector includes expenditure on General Education, Technical Education, Sports and Youth Services, Arts and Culture, Medical and Public Health, Family Welfare, Water Supply and Sanitation, Housing, Urban Development, Information & Publicity, Broadcasting, Welfare of SC, ST and OBC, Labour and Employment etc.
Growth in Social Sector Expenditure (SSE)
- SSE as a percentage of total expenditure (TE) increased from 23.3% in FY21 to 26.2% in FY25 (Budget Estimates).
- SSE has grown at a CAGR of 15%, reflecting a strong commitment to welfare.
- Health expenditure: Grew from ₹3.2 trillion in FY21 to ₹6.1 trillion in FY25BE (CAGR: 18%).
- Education expenditure: Increased from ₹5.8 trillion in FY21 to ₹9.2 trillion in FY25BE (CAGR: 12%).
Out of Pocket Spending (OOPE) on Healthcare Has Declined
- Investments in health insurance and infrastructure have brought down financial burdens on families.
- The survey highlights India’s progress toward the WHO standard of 1 doctor per 1,000 people by 2030, with 50,000 doctors licensed annually. Current ratio 1 doctor for every 1,263 people (138 million doctors available).
- Problem: Urban-rural inequality in the access to health care a 3.8:1 urban-to-rural doctor ratio.
Higher School Enrolments Lower Dropout Rates
- Education spending is up as is the Gross Enrolment Ratio (GER) aiming to reach 100% GER by 2030 as per the National Education Policy (NEP).
- Current GER levels
- Primary: 93% (near universal).
- Secondary: 77.4% (efforts underway to bridge gaps).
- Higher Secondary: 56.2% (significant room for improvement).
- Dropout rates are declining
- Primary level: 1.9%.
- Upper Primary: 5.2%.
- Secondary: 14.1%.
Policy Recommendations for Balanced Growth
- Calls for equitable and sustainable medical education policy that redresses urbanrural imbalances of the availability of doctors.
- On continuing investments in education to address gaps at the secondary and higher secondary levels.
