Provision of Public Health and Covid-19: A Case of Responsibility Evasion in India

Abstract

This study will analyse the overtime public spending in public health (1990-2020) and will also try to highlight how covid-19 pandemic can be a reminder to the government of its public health responsibilities it has been partially evading for too long. Covid-19 pandemic has led to emergence of macroeconomic crises inflated by public health crises. The public policy response to the pandemic has been to choose between twin alternatives of “Livelihood saving versus Life-saving”. A closer examination of the two crises reveals that the Livelihood crises to a large extent was magnified by lifesaving policies in emerging economies like India. Due to weak public health infrastructure these economies were forced to undergo abrupt and harsh lockdowns. In face of inadequate health infrastructure, the lockdowns were the only strategy left with the government-leading to classic supply side shock to macroeconomic aggregates. The inadequacy of health infrastructure can be primarily associated to a consistent tendency on the part of Indian government to evade its public health responsibilities. As of 2018-19 government has allocated 1.9 percent of its national income to health sector as against the standard norm of 3 percent. Apart from “good for growth argument” investment in health care is an important welfare target and a pre-condition to sustained economic growth. Apart from absolute inadequacy, the study found an asymmetric distribution of health infrastructure in the country.