Abstract

The research underscores the critical importance of investing in early childhood care and education (ECCE), demonstrating that such investments yield high returns of 7-10% per annum through improved educational, health, and economic outcomes, as well as reduced crime rates. The Global Financing Facility (GFF), launched by the World Bank Group alongside the governments of Canada, the United States, and Norway, supports developing countries in eradicating preventable maternal and child deaths by 2030. The Draft National Health Policy 2015 highlights India’s progress towards achieving the Millennium Development Goals (MDGs), with Maternal Mortality Rate (MMR) and Under-Five Mortality Rate (U5MR) projected to reach 141 and 42, respectively, by the end of 2015.

This report discusses the findings from an analysis of public health budgets, with a particular focus on the National Health Mission. We find that public health expenditure in India remains low at 1.04% of GDP. The National Rural Health Mission (NRHM), launched in 2005, aimed to increase public health expenditure to 2-3% of GDP but instead focused attention on critical health sector issues. While NRHM boosted state health budgets by 10% annually, it did not meet its expenditure targets.

Fiscal capacity varies across states, with Tamil Nadu having the highest potential to fund health needs, followed by Rajasthan and Bihar. Despite lower overall health expenditure, Bihar utilized a significant share of NRHM funds. The report emphasizes the need for public investment in healthcare infrastructure and services, especially in rural and marginalized areas, to improve healthcare utilization and outcomes. Improved fiscal capacity can enhance these investments, given the increased demand generated by NRHM.

CBPS. (2015). Analysis of health budgets with a special focus on RCH and MCH components of national health mission in Bihar and Rajasthan and Tamil Nadu. Bengaluru: Centre for Budget and Policy Studies.