Health expenditure

What do these indicators tell us?

Health expenditure includes all expenditures for the provision of health services, family planning activities, nutrition activities and emergency aid designated for health, but it excludes the provision of drinking water and sanitation.

Health financing is a critical component of health systems. National health accounts provide a large set of indicators based on information about expenditure collected within an internationally recognized framework. These accounts are a synthesis of the financing and spending flows recorded in a health system's operation, from funding sources and agents to the distribution of funds between providers and functions of health systems. It is also reflective of SDG 3: "Ensure healthy lives and promote well-being for all at all ages".

How are they defined?

General government expenditure on health as a percentage of total government expenditure - This indicator is defined as the level of general government expenditure on health (GGHE) expressed as a percentage of total government expenditure. It shows the weight of public spending on health within the total value of public sector operations. This indicator includes not just the resources channelled through government budgets, but also the expenditures channelled through government entities for health by parastatals, extrabudgetary entities and, notably, compulsory health insurance. The indicator refers to resources collected and pooled by public agencies, including all revenue modalities.

Total expenditure on health as a percentage of gross domestic product (GDP) - This indicator is defined as the level of total expenditure on health expressed as a percentage of GDP, where GDP is the value of all final goods and services produced within a nation in a given year. It provides information on the level of resources channelled to health, relative to a country's wealth.

Per capita total expenditure on health - This indicator is defined as the per capita total expenditure on health, expressed at the average exchange rate for that year in US$. It shows the total expenditure on health relative to the beneficiary population, expressed in US$ to facilitate international comparisons.

What are the consequences and implications?

These indicators reflect government and total expenditure on health resources, access and services, including nutrition, in relation to government expenditure, the country's wealth, and the population. Although increasing health expenditure is associated with better health outcomes, especially in low-income countries, there is no 'recommended' level of spending on health. The larger the per capita income, the greater the expenditure on health. Some countries, however, spend appreciably more than would be expected from their income levels, and some appreciably less. When a government attributes proportionately less of its total expenditure on health, this may indicate that health, including nutrition, is not regarded as a priority.

Source of data

WHO. Global Health Observatory (GHO) data repository.

Domestic general government health expenditure (GGHE-D) as percentage of general government expenditure (GGE) (%). Data by country (http://apps.who.int/gho/data/node.main.GHEDGGHEDGGESHA2011?lang=en).

Current health expenditure (CHE) as percentage of gross domestic product (GDP) (%). Data by country (http://apps.who.int/gho/data/node.main.GHEDCHEGDPSHA2011?lang=en).

Current health expenditure (CHE) per capita in US$. Data by country (http://apps.who.int/gho/data/node.main.GHEDCHEpcUSSHA2011?lang=en).

Internet resources

WHO. Health accounts (http://www.who.int/health-accounts/en/).

UN. Global Sustainable Development Goals indicators database (https://unstats.un.org/sdgs/indicators/database/).