PUBLIC EXPENDITURE ON HEALTH AND ITS IMPACT ON HEALTH INFRASTRUCTURE AND HEALTH STATUS IN HARYANA

Ishu Garg M. M. Goel

No 2016-09-04, Working papers from Voice of Research

Abstract: Health is an important factor for human resource development and is affected by availability of healthcare services. In this regard, the role of public expenditure on health to provide better health facilities and to improve health status of the masses becomes indispensible in any economy including Haryana. With this backdrop, the present study is an attempt to examine the impact of public expenditure (PEH) on health infrastructure and health status for the State of Haryana. For the same, the indicators of health infrastructure and status are selected and the data on the specified indicators are collected for the period of 1990-91 to 2011-12. Thereafter, the indicators of health infrastructure and health status are regressed on public expenditure on health (PEH) and its ingredients namely development revenue expenditure on health (DREH) and capital expenditure on health (CEH). It is found that these three expenditures have same direction of influences but difference occurs in the magnitude of their impacts. These expenditures having appreciable compound annual growth rate (CAGR) are impacting number of primary health centers (PHCs), community health centers (CHCs), sub-centers (SCs), total number of allopathic as well as ayurvedic, unani and homoeopathic (AUH) institutions positively. While their impact on number of hospitals, dispensaries, beds, BR, DR and IMR is negative. However, the remaining indicators are found to be expenditure inelastic which calls for further judgments of the cause of such results along with negative impact of public expenditure on health infrastructure. Also, magnitude of effects is found to be more in case of DREH followed by PEH and CEH despite lower CAGR of DREH than PEH and CEH. Accordingly, DREH calls for more emphasis; due to its highest impacts and a hope can be made that increase in DREH will essentially enhance health infrastructure and health status efficiently. Moreover, with DREH, there is strong case to raise CEH being a major source of creating health infrastructure. Above all, Government must increase public expenditure on health with its components (DREH and CEH) in every year’s budget; so that their positive impact could be sustained and demand-supply gaps in health facilities could be filled. Along with this, there is rationale for adopting good governance to check corrupt practices; and to allocate funds adequately on each and every health facility without financial leakages and wastages of funds so that our health infrastructure could be developed in sufficient quantity and better quality; and consequently, health status can be upgraded in Haryana. Key words: Public Expenditure, DREH, CAGR, Health infrastructure, Health Policy

Date: 2016-09
New Economics Papers: this item is included in nep-hea
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