ABSTRACT

Public investment in health in India has been miniscule compared to the demand for health care in the country. The rural sector, in particular, has suffered gross neglect with regard to public health services and facilities.1 Micro studies have shown an overwhelming dependence o f the rural population on private providers, even for common minor ailments.2 This is perhaps true for most developing countries. The proportion o f private expenditure in overall spending on health is fairly high for LDCs, and often higher than that in many developed countries.3 Although the need to provide free health care is fairly well-recognized, we do not observe any initiative in that direction reflected in terms o f greater public spending on health in most LDCs, including India.