Press Information Bureau
Government of India
Ministry of Health and Family Welfare
07-February-2014 15:37 IST
Disbursal of Funds under NRHM

Public Health is a State subject. Under National Rural Health Mission (NRHM), financial support is provided to the states /UTs to strengthen their health care system. Further under NRHM, an incentive of 5% of the total outlay for the state is provided to states/UTs for creation of a Public Health Cadre, which do not have it already. No state has claimed incentive for this reform so far.

A provision of incentives/disincentives for good/indifferent performance has been introduced under the NRHM. Sector wide reforms in areas such as responsiveness, transparency and accountability, policy and systems to provide free generic medicines to all in public facilities, quality assurance, Inter-sectoral convergence, state providing more than 10% increase in its annual health budget, creation of a public health cadre etc would attract additional allocation. On the other hand, failure to implement key conditionalities such as rational deployment of health human resources, implementation of free entitlements under Janani Shishu Suraksha Karyakram etc may lead to reduction in allocation.

The Government has recently revised the formula for allocation of funds to state/UTs under NRHM flexi pool to make it more rational. The revised formula inter alia provides some weightage to the geographical area of the states besides size of the population.

This was stated by Shri Ghulam Nabi Azad, Union Minister for Health and Family Welfare in a written reply to the Lok Sabha today.