SOCIAL WELFARE EXPENDITURE GROWS AT CAGR OF 12.8% BETWEEN FY18 - FY24

HEALTH EXPENDITURE INCREASES AT CAGR OF 15.8%

EXPENDITURE ON SOCIAL SERVICES INCREASES TO 7.8% OF GDP; HEALTH EXPENDITURE INCREASES TO 1.9% OF GDP IN FY24

India’s high and sustained economic growth in recent years is being accompanied by social and institutional progress, underpinned by transformational and effective implementation of Government programmes, states the Economic Survey 2023-24 tabled by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, in Parliament today.

The Survey notes that the Government’s spending on social services has shown a rising trend since FY16, with a focus on many aspects of the social well-being of citizens of the country. Between FY18 and FY24, the overall social welfare expenditure has grown at a Compounded Annual Growth Rate (CAGR) of 12.8% while the expenditure on health has grown at a CAGR of 15.8 %. Out of the total expenditure on Social Services of Rs. 23.5 lakh crores in BE 2023-24, health expenditure has increased to Rs. 5.85 lakh crores, as compared to the total expenditure on Social Services of Rs.11.39 lakh crores and health expenditure of Rs. 2.43 lakh crores in  2017-18.

As a percent of GDP, expenditure on social services has increased from 6.7% in 2017-18 to 7.8% in 2023-24. Correspondingly, health expenditure has increased from 1.4% to 1.9% in the same period. The Survey also highlights that as a percent of total expenditure, the expenditure on social services registered an increase to 26% in 2023-24 BE, out of which the expenditure on health constituted 6.5%.

Government social sector spending rises, with sustained increases in social welfare and health allocations affecting fiscal composition. Government social sector spending has risen since 2016, with social welfare expenditure growing at a CAGR of 12.8% and health expenditure at a CAGR of 15.8% between FY18 and FY24. In the 2023-24 budget estimates, expenditure on social services increased to 7.8% of GDP and health expenditure to 1.9% of GDP, while social services rose to 26% of total expenditure and health constituted 6.5% of total expenditure.