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        News and Press Release

        Finance Commission holds meeting with Ministry of AYUSH

        July 18, 2019

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        The Ministry of AYUSH  headed by Minister Shri Shripad Yesso Naik made a detailed presentation before the 15th Finance Commission on attaining national health goals through AYUSH health systems.  The Commission headed by Chairman, Shri N.K. Singh, was informed about various aspects of achievements of the Ministry and the issues where the Ministry has sought the intervention of the Commission.

        The Commission was informed that presently the following AYUSH healthcare facilities and allied framework exist in States/ UTs:-

        • Standalone AYUSH facilities – 30897 (AYUSH Hospital 3893, Dispensaries- 27004)
        • Co-located Public Health Facilities – 10955 (Out of Total 32053 Public Health Facilities existing in States/UTs.)
        • State Medicinal Plant Boards.
        • Each State/ UT has got its administrative set up to oversee the implementation of healthcare programmes under AYUSH systems.

        The Ministry felt that in order to take up AYUSH healthcare activities, and other related works of AYUSH sector viz. drug quality control and production of herbal raw-material, following constraints are faced by States/ UTs:-

        • Inadequate budgetary support:  The funds received by State AYUSH Departments under State annual plants often remain inadequate.  Most of the State AYUSH Departments did not receive funds from special sources like 14th Finance Commission award. The central grant –in-aid allocated under National AYUSH Mission (NAM) to States/ UTs also remains insufficient and inadequate due to small size of NAM Scheme.
        • Administrative framework to oversee the implementation of AYUSH health care programmes at State level is inadequate in most of the States/ UTs.  It severely hinders the quality and quantity of AYUSH health care services delivery in underserved and unserved areas.

        The Ministry has made the following recommendations to the Commission:

        • A minimum of 10% of the Health sector grant earmarked under 15th Finance Commission award be dedicated to AYUSH Departments in States/ UTs.
        • The existing CSS (NAM) should be allowed to continue with more comprehensive objectives and enhanced funding.
        • At present, fund flow under CSS is through Treasury route.  It affects the output and outcome of schemes due to delay in release of funds by state treasuries to implementing agency.  Instead of Treasury route, funds may be placed with implementing agencies directly.
        • Inter-alia, indicators for development of AYUSH may also be adopted as one of the criteria for devolution of funds to States.

        The Commission has carefully noted all the issues raised by the Ministry of AYUSH and has promised to take a favorable view while its recommendations to the uniform Government on the devolution of resources to AYUSH.

        Funding allocation for AYUSH: recommend earmarking part of health grants and direct fund flow to implementers. The Ministry presented the operational status of AYUSH systems and identified inadequate budgetary support and weak State administrative frameworks as primary constraints. It recommended dedicating a share of Health sector grants to AYUSH Departments, continuing and expanding the National AYUSH Mission with enhanced funding, shifting fund flow from Treasury to direct placement with implementing agencies, and adopting AYUSH development indicators as a devolution criterion. The Finance Commission noted the proposals and indicated favourable consideration in its devolution recommendations.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Funding allocation for AYUSH: recommend earmarking part of health grants and direct fund flow to implementers.

                                The Ministry presented the operational status of AYUSH systems and identified inadequate budgetary support and weak State administrative frameworks as primary constraints. It recommended dedicating a share of Health sector grants to AYUSH Departments, continuing and expanding the National AYUSH Mission with enhanced funding, shifting fund flow from Treasury to direct placement with implementing agencies, and adopting AYUSH development indicators as a devolution criterion. The Finance Commission noted the proposals and indicated favourable consideration in its devolution recommendations.





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