As India's health crises grow, funds unspent by states swelled 29% in 5 yrs

As India's health crises grow, funds unspent by states swelled 29% in 5 yrs India ranks lower than neighbouring Bangladesh and even sub-Saharan Sudan and Equatorial Guinea on healthcare access, and it spends 1.4 per cent of its GDP on health, the least among BRICS nations

Even as health crises in India grew, National Health Mission (NHM) funds unspent by states over five years to 2016 increased by 29 per cent, according to a recent audit by the government’s auditor. The audit by the Comptroller and Auditor General (CAG) of India also reported delayed transfers and misallocation of these funds.The NHM, launched in 2005, is India’s largest health programme aimed at providing universal access to healthcare. One of its primary missions is to improve maternal and child health and control communicable and non-communicable diseases.

Data show why it is critical that NHM funds be used optimally: India still accounts for 17 per cent of global burden of maternal deaths, non-communicable diseases made for 61 per cent of deaths in 2016, communicable diseases like leprosy and malaria are yet to be controlled and 55 million Indians slipped into poverty in 2011-12 because of health catastrophes they could not afford.NHM also disburses funds to state health societies to help strengthen local health systems, institutions and capabilities. Rural health centres in India are short of human resources and infrastructure, as Indiaspend reported on January 30, 2018. Sub-centres were 20 per cent short of human resources, 29 per cent of them did not have regular water supply, 26 per cent lacked electricity supply and 11 per cent were not connected by all-weather roads.

India ranks lower than neighbouring Bangladesh and even sub-Saharan Sudan and Equatorial Guinea on healthcare access, we reported on May 23, 2018. And it spends 1.4 per cent of its gross domestic product (GDP) on health, the least among BRICS nations.

In a two-part series, we look at the government auditor’s assessment of NHM’s functioning. In part one, we report on instances of financial mismanagement. The concluding part will detail the shortfalls in infrastructure and medical staff caused by this mismanagement.The government has denied charges of financial irregularity. Funds were being released as soon as states fulfilled the requirements for their allocation, according to Manoj Jhalani, additional secretary and mission director, NHM. “The diversion of NHM funds for non-NHM purposes/state government schemes is never supported by the ministry,” he said. “If any such instance comes to (our) notice, the same is recovered from the concerned state government, and states are directed to desist from such practice.”

Delayed transfers, misallocation and a growing balance

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