Punjab Receives 1st NHM Funds After Resolution with Center, State’s Share for 2023-24 Remains Uncertain

After an 18-month halt, the Union government released INR 123 Cr to Punjab as part of the current financial year’s funding under NHM.

The central government has released the first installment of National Health Mission (NHM) funds to Punjab following a lengthy dispute over the branding of state-run Health and Wellness Clinics (HWCs).

The standoff, which began in early 2023, revolved around the Punjab government’s decision to label these clinics as Aam Aadmi Clinics (AACs), a move the Union government claimed breached the NHM’s guidelines on clinic branding.

After an 18-month halt, the Union government released INR 123 Cr to Punjab on Tuesday as part of the current financial year’s funding under NHM.

However, the release of over INR 621 Cr, Punjab’s designated share for the 2023-2024 fiscal year, remains uncertain. According to Punjab’s health department, the central government had withheld funds since February 2023 due to the branding dispute.

Punjab Agrees to Branding Changes, Funds Remain in Question

In a bid to end the funding impasse, Punjab recently agreed to the Centre’s demands, removing the picture of Chief Minister Bhagwant Mann from over 600 clinics previously branded as AACs.

As part of the compromise, the state agreed to rename these centers Ayushman Arogya Kendras, which aligns with NHM’s official branding. Under the agreement, the central government will implement its own branding for these clinics.

Punjab will, however, continue using the Chief Minister’s image on AACs set up independently by the state without central funding.

Despite these concessions, the Union health ministry has yet to provide written confirmation regarding the release of funds withheld for the 2023-24 period.

Uncertainty Over INR 621 Cr State Share

According to a senior Punjab health official involved in discussions with the Union health ministry, there is still no clarity regarding the INR 621 Cr allocated for the previous financial year.

“We are concerned that Punjab could lose this amount due to the branding dispute,” the official noted. “Although the central health ministry has hinted at withholding this funding as a penalty for the branding change, we are actively pressing for a reconsideration.”

The state health department is reportedly determined to advocate for the release of the funds, which would cover essential NHM services across Punjab. “We have made a strong case for the release of the withheld funds and will continue to push for it,” the official added.

While the release of the initial installment is a positive step, the unresolved funding for the 2023-24 fiscal year highlights ongoing friction between Punjab and the Centre.

Without these funds, Punjab’s health department may face challenges in meeting NHM targets and addressing public health needs. The outcome of the ongoing discussions will be critical in determining the financial landscape for healthcare delivery in Punjab.

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