Health spending spiked during the pandemic but has since steadily declined.
While initial cuts seemed temporary, the trend indicates a more permanent decrease in health spending across low- and lower-middle-income countries (LICs and LMICs).
From 2019 to 2023, government health spending per capita grew only slightly—0.4% in LICs and 0.9% in LMICs.
India, as an LMIC, also experienced a significant drop in health spending, moving from higher health budget shares during the pandemic to a reduced share of 1.75-1.85% post-pandemic.
In 23 countries, including India, IMF forecasts a likely contraction in government budgets between 2023-2029, potentially leading to difficult trade-offs in maintaining health funding.
These spending trends threaten the achievement of health-related Sustainable Development Goals (SDGs), as progress is hindered by lower health funding and reduced political focus on health.
Between 2015-2019, health spending saw significant growth: 4.2% annually in LICs and 2.4% in LMICs.
COMMENTS