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Abstract
This paper analysis the relationship between public health expenditure and economic growth on the states based on an annual data series from the period 2014 -2015 to 2018-2019. The domain of the term 'Health' is as large and complex as the entire scope of human activities. Good health is a pre-requisite to human productivity and development process. The health care financing is one of the most important components of health system. This mainly deals with funding for the health care by different sectors. There is a need to arrange health care financing in such a way that it reduces the overall out of pocket expenditure on health care. One of the central problems has been the low levels of public spending on health and as a result the poor access to affordable and good quality healthcare for the majority of India’s population. Health is a State Subject in the Indian Constitution. Accordingly the primary responsibility of organisation and delivery of health care services rests with state governments.