The government has ordered a cut of nearly 20 percent in its 2014/15 healthcare budget due to fiscal strains, putting at risk key disease control initiatives in a country whose public spending on health is already among the lowest in the world. Two health ministry officials told Reuters on Tuesday that more than 6000 crore rupees, or $948 million, has been slashed from their budget allocation of around 31,640 crores ($1 = Rs. 63.28) or $5 billion for the financial year ending on March 31.
Despite rapid economic growth over the past two decades, successive governments have kept a tight rein on healthcare expenditure. India spends about 1 percent of its gross domestic product (GDP) on public health, compared to 3 percent in China and 8.3 percent in the United States. But hopes were high that Prime Minister Narendra Modi, who was elected in May, would upgrade basic health infrastructure and make medical services more affordable for the poor.

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