Parliamentary committee flags underuse of health infra mission funds

The parliamentary panel, chaired by Samajwadi Party (SP) member Ram Gopal Yadav, expressed concerns over the scheme's absorption capacity and the professional efficiency of its implementing agency

The Parliamentary Standing Committee on Health has asked the Ministry of Health and Family Welfare to take steps to prevent underutilisation of funds under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).

 

According to data, the ministry had allocated ₹3,200 crore for the mission in the Budget Estimates (BE) for financial year 2024-25.

 

The Revised Estimates (RE) for the year fell to ₹3,000 crore, of which ₹2,007 crore — 66.9 per cent — has been spent till February 2025.

 

Similarly, while ₹4,200 crore was earmarked for the scheme in BE 2023-24, the RE for the year fell to ₹2,100 crore. Expenditure for FY23 was ₹1,805 crore, 85 per cent of the RE for 2022-23.

 

The parliamentary panel recommended a more streamlined and front-loaded disbursement process for the scheme.

 

“The data clearly shows consistent underutilisation of allocated funds, particularly in the initial phases of each financial year despite the capital intensive infrastructure project under the scheme,” said the panel chaired by Samajwadi Party (SP) Member Ram Gopal Yadav.

 

The panel added that the health department attributed this underuse to the lead time of capital expenditure projects. But significant reductions from BE to RE indicate a predictable pattern of slow pace of expenditure.

 

To address this, the committee suggested implementation of a system where a larger portion of the annual budget is released during the first quarter. This, however, would depend on states submitting detailed project implementation plans and timelines.

 

“This would allow for early initiation of infrastructure projects, reducing the lag time and ensuring more consistent expenditure throughout the financial year,” it added.

 

While the committee mentioned the significant progress made under the PM-ABHIM scheme, it also raised concerns over the lagging pace of project execution.

 

The centrally-sponsored scheme (CSS) focuses on developing capacities of health systems and institutions across the continuum of care at all levels — primary, secondary and tertiary — over five years (FY22-FY26).

 

Key infrastructure components under the mission include building-less sub-health centres (SHCs) in rural areas, urban ayushman arogya mandirs (U-AAMs), block public health units (BPHUs), integrated public health laboratories (IPHLs) and critical care blocks (CCBs).

 

According to data shared by the ministry, there has been advancement in work initiation across various components between FY22 and FY25. But work completion rates are still slack.

 

Of the 13,081 component units approved to be built under the mission, only 5,682 have been completed, which is around 43 per cent.

 

Similarly, only urban AAMs have recorded a completion rate of more than 50 per cent, with the rest lagging behind.

 

The committee specifically highlighted the dismal 3 per cent completion rate for CCB units, with only 10 CCBs operational out of the 394 approved initially. 

 

The committee report noted that while the department has taken steps to accelerate progress, including preponing activities and conducting regular reviews, land acquisition for CCBs remains a major bottleneck.  

 

It added that while the scheme’s focus on strengthening health infrastructure across all levels is well taken, the timelines for completion of projects need closer monitoring.

 

“The department should focus on providing technical assistance and capacity building to states to expedite project approvals and implementation. This would mitigate delays and ensure the timely achievement of the scheme's objectives,” the report stated.