Each year a set of indicators are defined under conditionality framework along with the expected level of achievements in accordance with priorities of Ministry of Health & Family Welfare. For financial year  2017-18, the indicators for key conditionalities included NITI Aayog’s ranking of states on ‘Performance of Health Outcomes’ and 50% weightage was given to it. In FY 2017-18, 10% of the total NHM budget of the states was linked to key conditionalities. The framework for key conditionalities includes the identified indicators, expected level of achievement for each indicator, weightage allotted to each indicator and source of verification. An assessment is done towards the end of the F.Y based on reports submitted by the State/ UTs and existing data sources to calculate the performance and the final fund released for the State/UT is adjusted as per the incentives/dis-incentives earned by the State/UT.  Incentive or penalty based on NITI Aayog’s ranking of states was given 50% weightage in FY 2017-18. Based on the ranking, incremental changes of each state/ UT were measured and:

(i) States showing overall improvement were incentivized

(ii)States showing no overall increment got no penalty and no incentive

(iii) States showing decline in overall performance were penalized

The percent of incentive / dis-incentive was provided in portion to overall improvement shown by the best performing state and the worst performing state (ranging between +50% to -50%)

Overall incentive/ dis-incentive for a state is calculated based on weighted average score against the set indicators. In FY 2017-18, Tamil Nadu has received an incentive of 5.5% based on the overall performance.

The Minister of State (Health and Family Welfare), Sh Ashwini Kumar Choubey stated this in a written reply in the Lok Sabha here today.

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MV/LK