Change in States' Capital Expenditure on Health during the Pandemic

The gaps in health infrastructure in states have often been discussed in the context of the pandemic. The need for expansion in budgets for health exist not only for spending on capital heads of expenditure such as building of hospitals, buying of ambulances etc. but also on addressing the acute human resource shortages through recruitments and spending more on their salaries. While higher capital expenditure, on its own, does not indicate better quality of spending on health services, it remains an important indicator to study in the context of the present health crisis. The metric considered below provides a comparison across states about how the allocation in the capital heads of the budget for health have changed in 2021-22BE as compared to 2020-21BE. While states like Uttar Pradesh (115.8%) and Madhya Pradesh (85.9%) have recorded the highest increases in allocations under the capital account for the health sector, Kerala (-1.6%) and Gujarat (-5.3%) have witnessed decrease in the capital budget for health.

Hover over the State, or tap on it, to see value of the indicator

Source: Detailed Demands for Grants, Annual Financial Statements, Budget at a Glance, for various states

Notes:
1. 'Health budget’ here includes the total budget of the state’s health-related departments (such as Department of Health and Family Welfare, Department of Medical Education etc.) Additionally, it includes major expenditure on health undertaken by other state departments (such as Departments of Labour, Public Works, etc.); and budgets on health for Scheduled Castes and Scheduled Tribes.
2. For Punjab, the budget documents of 2021-22 are unavailable online and hence it could not be included in the state-wise comparison.
3: For Mizoram, the change in capital expenditure in 2021-22 (BE) has been compared with 2020-21 (RE) since the budgetary allocation under capital head in 2020-21 (BE) has been reported to be zero.

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Copyright: Centre for Budget and Governance Accountability (CBGA) 2021

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