Health ministry likely to face massive Rs 6,000-cr budget cut

The Health Ministry budget is likely to face a massive Rs 6,000-crore (Rs 60 million) cut on account of non- utilisation of the entire budgetary allocation even as its Minister J P Nadda on Wednesday maintained that no flagship programme will be affected due to the downsizing.

Nadda also noted that this was done by the Finance Ministry due to under-utilisation of funds by the agencies concerned, including the states.

"But the Health Ministry is not at all affected. No project, flagship programme, no programmes of giving equipment, medicines, infrastructure are suffering because of this," Nadda told reporters.

"That is given to understand...You are using the word cut but I will use it as under-utilisation" he said when asked if he was confirming that the cut will be to the tune of Rs 6000 crore, which was 20 per cent of the total allocated budget.

Emphasising that he was laying stress on the word utilisation rather than cut, Nadda said that it was the states which had to spend the funds.

"Frankly, no flagship programme is getting affected because of the cuts. In the last quarter one certain level is marked. According to utilisation, assessment is done. What we will be the expenditure in three months, that is also to be assessed. 

The Ministry of Finance does that.

But there is no dearth of funds in any flagship and ongoing programmes which have been the areas of less or more concerns. We have adequate funding for all concerns," the Minister said.

Asked whether the losses, if any, to the Ministry will be compensated, Nadda said that there were no losses and the sector will get funds that were required and the Health Ministry has to improve on the optimum utilisation of the funds.

"Although the word cut might have other impact, I would like to think in terms of that whether we are able to utilise it (funds) or not," he said.

Former Health and Family Welfare Minister Ghulam Nabi Azad had earlier said that any move towards slashing the budgetary allocation for the health sector will be shocking.