Public health expenditure and health outcome in terms of infant mortality rate in Indian States

This paper provides statistical evidence linking per capita public health expenditure and per capita public social service expenditure related to health outcome in terms of infant mortality rate in selected states of India. The relationship is examined, using time series data from six selected states of India namely Assam, Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh between 2001 and 2013. Public health expenditure has a statistically significant effect on infant mortality rate in the selected states of India. Our results imply that public health expenditure have a major impact on the health outcome on infant mortality rate. We find, Public health expenditure and Public health related social service expenditure has a significant impact on the reduction in IMR in all the states. These results have important implication to correct the failureness of the government to achieve the target intended in Millennium development goals.