Does More Funding Mean Better Health? A State-Level Analysis of Public Health Expenditure in India

Vivek Babbar () and Jitender Bhandari ()
Additional contact information
Vivek Babbar: Christ (Deemed to be) University, Research Scholar, Economics
Jitender Bhandari: Christ (Deemed to be) University, Associate Professor, Economics

A chapter in Proceedings of the International Conference on Policies, Processes and Practices for Transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025), 2025, pp 163-179 from Springer

Abstract: Abstract In an effort to enhance government health expenditures and improve state-level health facilities, the Central Government of India adopted the Millennium Development Goals (MDGs) in 2000, launched the National Health Mission (NHM) in 2013, and most recently implemented the National Health Policy (NHP) in 2017. This study looks at how public health spending affects important health outcomes, such as the infant mortality rate, neonatal mortality rate, fertility rate, and malaria cases. It takes into account per capita income and spending on water supply and sanitation. The research examines 16 major states from 2000 to 2021. Additionally, it compares the effects of public health spending in both high-performing and under-performing states. The study used secondary data from the Sample Registration System (SRS), Economic Political Weekly Research Foundation (EPWRF), and the annual RBI state finances report. Based on the Hausman test, the study uses panel fixed-effects and random-effects models where suitable. Empirical findings show that overall public health spending decreases malaria cases, infant mortality, and neonatal mortality rates. The study also finds no significant impact between Public health spending and health outcomes, especially in under-performing states. Indian states should boost capital health spending to improve health infrastructure and consider public-private partnerships. This is important for achieving better health outcomes. This study provides key suggestions for shaping public health policy in developing countries.

Keywords: Public Health Expenditure; Health Indicators; High Performing States; Under Performing States; Fixed Effect Model; Random Effect Model (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-894-3_12

Ordering information: This item can be ordered from
http://www.springer.com/9789464638943

DOI: 10.2991/978-94-6463-894-3_12

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().