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ABSTRACT This paper aims at examining the trends, composition and rate of growth of public expenditure on health sector in India, covering the period from 2000-01 to 2012-13. It has perused the Annual Financial Statements of the Budget of Government of India of various years in order to analyse the Public expenditure on health. The total public health expenditure in the country, irrespective of revenue and capital accounts, has increased gradually over the period 2000-01 to 2010-11 with a CAGR of 19.58 per cent. The per capita public expenditure on health sector in India increased from Rs.24.26 in 2000-01 to Rs.157.18 during the year 2010-11. For the year 2012-13, the Budget estimates for health sector in India is earmarked at Rs. 24261.06 crore. The percentage share of public health expenditure to the GDP of the country saw a mere increase from 0.13 per cent to 0.26 per cent during the period 2000-01 to 2010-11 respectively. Besides this revealing trend, the Government of India has set the target of increasing the government health spending to 2-3 per cent of country�s GDP over the next five years.