The Comptroller and Auditor General of India (CAG) has criticized the Central Government Health Scheme (CGHS) for buying high-priced branded drugs instead of the generic variety.
An amount of Rs 11.81 crore could have been saved if generic drugs had been procured, said a report which was tabled in parliament Friday.
The CAG in its report also points to the delay in procurement of drugs ranging from two to six months after asking a consulting firm for procuring drugs required by CGHS centres.
The CAG audit has also revealed losses to the tune of Rs 5.06 crore in tuberculosis division of the health ministry.
"Branded drugs continue to be preferred over generic drugs despite adverse remarks of the parliamentary committee. This caused significant financial burden on the exchequer," said the report.