Centre withholds Rs 700 crore allocation for Punjab in FY24

The Punjab government has taken a decisive step to allocate resources from its budget to continue the operations of various programs under the National Health Mission (NHM), following a prolonged funding halt by the central government. This move comes after repeated appeals to the Union health ministry to resume financial support went unheeded, primarily due to a dispute over the branding of health facilities in the state.

Punjab allocates own funds to support health programs amid central funding freeze
The contention began over a year ago when the central government and the Punjab government clashed over the rebranding of approximately 390 health and wellness centers as Aam Aadmi Clinics (AACs). This disagreement led to the central government withholding funds meant for the state under the NHM scheme.

According to Dr Singh, the central government has withheld about Rs 112 crore allocated for the financial year 2022-23
Dr Balbir Singh, the Health Minister of Punjab, responding to an inquiry from MLA Dr Nachhatar Pal of the Nawanshahr assembly constituency, revealed the financial impact of the standoff. According to Dr Singh, the central government has withheld about Rs 112 crore allocated for the financial year 2022-23 and approximately Rs 700 crore intended for the fiscal year 2023-24.

This funding impasse has placed significant strain on the state’s health infrastructure, particularly affecting the continuation of essential health services and programs that rely on NHM funds. The Punjab government’s decision to utilize its own financial resources to sustain these programs highlights its commitment to healthcare accessibility and the well-being of its citizens, despite the challenges posed by the funding halt. DNP INDIA