The committee noted that against the projected demand of Rs 34,315.66 crore for 2017-18 under National Health Mission (NHM), the total allocation in Budget Estimates (BE) 2017-18 is only Rs 26,690 crore, leaving a "shortfall" of Rs 7624.96 crore.
In comparison to the Revised Estimates (RE) 2016-17 allocation of Rs 22197.95 crore, the increase in BE 2017-18 is only Rs 4492.75 crore which is "insufficient", the committee on Demands for Grants 2017-18 of Department of Health and Family Welfare said.
The committee noted that the shortfall in allocations for NHM for 2017-18 vis-a-vis its projected demand for funds will "adversely impact" a number of health initiatives.
These include upscaling of health facilities to Indian Public Health Standards, establishing sub-health, primary and community health centres as per norm, rolling out Universal Health Coverage pilot projects, scaling up free drugs and diagnostic initiatives among others, the committee said.
It is due to the revised Centre-state funding pattern from 75:25 to 60:40 post hike of share of states in the central taxes divisible pool from 32 per cent to 42 per cent in the form of united funds, it noted.
The committee highlighted that as per the latest National Health Accounts estimates (2013-14), 35.7 per cent of the total health expenditure is on medicine purchase and as per National Sample Survey Office (NSSO) data, nearly 71 per cent of the out of pocket (OOP) burden is due to expenditure on medicines.
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