'Cutting health aid to states will have catastrophic results'

A parliamentary panel today said that cutting down on central budgetary support to states for health sector will have "catastrophic consequences", and recommended the Health Ministry to provide them additional financial resources.
Parliamentary Committee on action taken by government on the recommendations of 82nd report on Demand For Grants 2015-16 of Health Ministry noted that the slashing of central budgetary support to states for health sector will further accentuate the problem and have "catastrophic consequences".
None of the states had increased the budget allocation for health during 2015-16 despite 10 per cent increase in the states' share post new tax devolution formula, it said.

The Committee said despite the new Centre-State tax sharing model, several of the states are complaining that they are worse off in the new dispensation as they see a reduction in their share of Central funds under the new devolution formula.
"The Committee, therefore, recommends the department should once again impress upon the Ministry of Finance the imperative of providing additional financial resources for health for the financial year 2015-16 through Supplementary Demand for Grants," it said.
The Committee also asked the Ministry to make an assessment whether states are allocating additional resources to health post 10 per cent increase in devolution of Central tax.

"The Committee recommends that an assessment be made urgently and communicated to the Committee as to what extent the 10 per cent rise in states revenue is reflected in the allocation of additional resources for health by them," the report said.
It has also suggested that the department of Health and Family Welfare in coordination with states should develop a paradigm of technical process so as to track and report the flow of funds from Centre and states to health sector in order to optimally utilise the available financial resources.