National Rural Health Mission (NRHM) was launched in April 2005, with a view to improve availability and accessibility to quality health care for the people, especially residing in rural areas with focus on the underserved population and marginalized groups. The main focus areas of NRHM included improvement in health infrastructure, providing adequate human resources to man health facilities and to provide quality health care service. As per Economic Survey, the expenditure on health (Centre & State combined) stood at Rs. 1,15,426 crore in 2011-12 as against Rs. 45,428 crore in 2005-06. As a percentage of GDP, it increased from 1.23 percent in 2005-06 to 1.30 percent in 2011-12.
As per World Health Statistics 2012 published by World Health Organization (WHO), private and general Government expenditure on health as percentage of total expenditure on health for India in 2009 is 69.7 % and 30.3% respectively and Out of Pocket expenditure as percentage of private expenditure on health for India in 2009 stood at 86.4%.
As per the draft 12th Five Year Plan document, total public funding by the Centre and States, plan and non-plan, on core health is envisaged to increase to 1.87 per cent of GDP by the end of the Twelfth Plan. When viewed in the perspective of the broader health sector, the total Government expenditure as a proportion of GDP in the Twelfth Plan is envisaged to increase to 3.04 per cent of GDP by the last year of the Twelfth Plan. The tentative allocation for 12th Five Year Plan for Ministry of Health and Family Welfare has substantially increased to Rs.300018 crore, which is an increase of 202 percent over actual allocation for 11th Plan period.