The Rising Burden of Healthcare Expenditure in India:
A Poverty Nexus
Accepted: 7 June 2016 / Published online: 17 June 2016
Ó Springer Science+Business Media Dordrecht 2016
Abstract The increasing burden of communicable and non-communicable diseases are
imposing unavoidable costs on Indians. As a consequence it exacerbate poverty and drag
many poor further down by heavy medical expenses. This study aims to estimate the extent
of healthcare expenditure on the individuals who were hospitalized due to various diseases.
Further, this study examines the burden of healthcare expenditure on impoverishment level
in India. The unit level record of the 71st round of the National Sample Survey Ofﬁce
(NSSO) is used in the analysis. The result reveals, cost of hospitalization due to non-
communicable diseases is three times higher than communicable diseases in India.
Therefore, an overall level of impoverishment has been increased by 1.61 percent/year
which shows the high ﬁnancial risk for the people surviving at the threshold of poverty.
Keywords Healthcare expenditure Á Poverty Á Economic burden of diseases Á
Communicable diseases Á Non-communicable diseases
Notwithstanding a rapid economic growth in last few years, public spending on healthcare
in terms of percentage of gross domestic product (GDP) has not gone up signiﬁcantly, and
the share of the central government has been progressively declining over the years. Public
health expenditure is the signiﬁcant component of provisioning of healthcare services
The original version of this article was revised. The formula in section 126.96.36.199 Multivariate Analysis and the
ﬁgure missing the full name of the variables. The correct formula and ﬁgures are given in this erratum.
& Pushpendra Singh
Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee,
Uttarakhand 247667, India
Soc Indic Res (2017) 133:741–762