Macrorco
Macrorco
Macrorco
Introduction
The health system finance is the most important challenge for achieving Universal
India as well as many low-income and middle-income countries, suffer lower growth
pocket (OOP) expenditure for obtaining health care services. The idea which was
proposed that these counties should spend at least 15% of total government
provide basic health care service to the people. It is noticed that the public health
lesser than the low-income countries average health expenditure, while the PHE as
expenditure is from OOP in India and that figure is even higher than the other low-
income and middle-income countries such as Pakistan (56%), Indonesia (47%), Sri
The pertinent factor for the slower growth of public expenditure on health care is due
to less fiscal space in these economies. Fiscal space of a country refers to the
government’s ability and willingness to mobilize public revenues, which allows the
government to spend resources on public services such as health care. Further, the
2015” have declared domestic revenue mobilization as one of the most powerful
ways to increase fiscal space for the health sector. The generation of fiscal space is
essential for the health sector because, the greater the fiscal space of a country, the
greater the potential for public expenditure on health. Also, greater public
health care services, and consequently a lower financial burden on poor households.
macroeconomic factors are not independent of each other and they affect the
debt increases over a longer period of time, for the repayment of debt
services, the government can squeeze the resources available to finance the
developmental expenditure. Again, the high level of debt stock compels the
the interest payments. Also, higher levels of inflation, are linked with
macroeconomic instability due to fall in demand for money and decline in the
the fiscal space of the government and restrain any scheme to finance
on PHE is more relevant in the context of Indian states for the period 1990–
First, the provision of medical and public health services and allocation
minus current revenue) among the states of India, which has led to the
high fiscal deficit and a large debt stock. These create fiscal stress and
health sector.
Result shows that state’s own revenue (i.e. tax revenue and indirect
tax) and central government transfer (i.e. tax devolution) are the major
public providers for financing the health care of Indian states. The
care finance.
expenditure by 2030.