Impact of NRHM expenditure on infant mortality rate

The paper aims to investigate the impact of public expenditure under the National Rural Health Mission (NRHM) on the Infant Mortality Rates (IMR) in selected states of India, with a focus on evaluating whether enhanced spending in the health sector through NRHM has contributed to reducing the IMR rates. The study covers 21 states in India and utilizes a panel data set spanning from 2007 to 2021. The fixed and random effects models have been utilised to investigate the impact of NRHM spending on IMR. For the appropriateness of the model, Hausman’s test has been carried out, which confirmed that the fixed effects model is more appropriate than the random effects model. However, for the sake of comparison, the results of both models have been reported. The outcome of the study confirms the inverse relationship between NRHM spending and IMR. This implies that as the level of expenditure in the form of NRHM increases on health, it helps in minimizing the rate of IMR. It implies that increased NRHM expenditure has played a decisive role in minimizing the IMR deaths across the various states. The findings suggest that expenditure under the NRHM has contributed significantly to the reduction of infant mortality across Indian states. The government should prioritize investment in the health sector to boost public health outcomes. It is crucial to integrate health policy with broader economic plans, as increased health expenditure can result in a more resilient and healthy economy when managed effectively. The contribution of the present study lies not in being the first to address this relationship, but in offering incremental value through a comprehensive state-level panel analysis covering 21 Indian states over a relatively long period (2007–2021). By employing updated data, a longer time horizon that captures both NRHM and NHM phases, and panel econometric techniques that account for inter-state heterogeneity and temporal dynamics that are not adequately addressed in earlier literature, the study provides more robust and refined evidence on the NRHM expenditure and IMR relationship.