In India, the health sector is accounted through various sources of funding. They include Central Government, State Government, Local Government, Households, External Funding, Firms and other sources including NGOs. The funding by Central, State and Local Governments constitute the public expenditure. Under the budget, the public expenditure is classified into two main accounts. One is Revenue Expenditure Account, wherein the consumption expenditure incurred in the country is recorded and on the other hand is the Capital Expenditure Account, wherein the capital expenditure incurred in the country is recorded. With regard to health sector in India, transactions are recorded by two major heads under both the accounts i.e., Medical & Public Health and Family Welfare. The objective of this paper is to examine the trends, composition and rate of growth with regard to Government Expenditure on Health in India during the period of 2001 to 2015. The paper focuses on expenditure incurred by the Central Government on health sector in India. It covers the period of 2001 to 2015. Further the study peruses the “Annual Financial Statements” of Union Budget of various years available at the website of Ministry of Finance, Bank of India, Government of India as the chief source for analyzing the expenditure incurred by the Government on health sector in India.

Keywords : Public expenditure, Health and Family welfare.