The 2.5% promise: India’s health-spending target keeps slipping
A target set in 2017, due in 2025, still unmet — and the central government’s share has been shrinking, not growing.
The National Health Policy of 2017 set a clear, measurable goal: raise public health expenditure to 2.5% of GDP by 2025. It is the kind of promise that is easy to check.
As of 2025-26, combined Centre-plus-State public health spending sits around 1.9% of GDP — well short of the target. Notably, the Union government’s own share fell from about 0.37% of GDP during the pandemic to roughly 0.29% in 2025-26; states have carried more of the load, rising to about 1.1%.
Why the gap is felt, not just counted
Under-funded public health pushes families toward expensive private care — a leading cause of households falling into debt. Closing the 0.6-point gap to 2.5% isn’t a rounding error; it is the difference between a clinic that’s staffed and one that isn’t.
The honest scorecard: real money has gone in, and state spending has grown — but the headline national promise remains unmet, largely because the central share dipped. Meeting it is a budgeting choice, not a mystery.
Sources · Free to verify
- World Bank: current health expenditure (% GDP), India
- PRS: Demand for Grants 2025-26, Health
- IMPRI: where India’s health budget stands
This is a sourced explainer built on public data — not original reporting. Every figure traces to a source above.