Health Sector: Underutilisation of Central Funds in AP
Public health experts have pointed out that poor planning is a key reason behind the underutilisation
KURNOOL: The utilisation of Central funds in Andhra Pradesh’s health, medical and family welfare department has come under sharp criticism, as officials reportedly failed to utilise a significant portion of the allocated budget within the stipulated time.
According to official data, nearly 29 per cent of the central funds lapsed during the 2025-26 financial year due to delayed and slow utilisation. This is when the state’s health sector is already facing resource constraints.
The Centre had allocated `1,947 crore to Andhra Pradesh under various health schemes for the fiscal 2025–26, with a deadline of March 31, 2026, for their utilisation. The state could utilise only `1,391 crore, leaving `557 crore unspent. This has subsequently lapsed.
Experts have questioned the inability of the officials to effectively use the available funds.
A senior official from the family welfare department cited procedural issues as the reason. “There were certain technical reasons. We will request the authorities to allow carry-forward of the lapsed funds to the next year,” he said.
In a striking instance, the state drug control department failed to utilise even a single rupee out of the `2 crore allocated to it, resulting in a zero per cent utilisation. This has raised concerns about the functioning of the regulatory system.
Some officials cited the standard excuse -- that despite the establishment of drug testing laboratories, a shortage of staff has hampered their efficiency, limiting the number of samples being tested.
A deputy director in the drug control department said, “Utilisation of funds depends on directives from higher authorities. The schemes and allocations are pre-determined, and expenditure is made accordingly.”
However, there was some relief in the utilisation of funds earmarked for strengthening the health system, where the lapsed portion was limited to around 20 per cent.
Public health experts have pointed out that poor planning is a key reason behind the underutilisation.
“With proper planning and timely execution, utilisation of funds is not difficult. Some northern states have achieved nearly 100 per cent utilisation,” said a retired joint director from the public health department.
He said, “Lapsing of funds reflects a certain level of administrative negligence.”
The issue has once again highlighted the lack of better planning, coordination and accountability in the utilisation of public funds, especially in critical sectors like healthcare.
The utilization of funds received from the central government in the state is as follows (₹ in crores)
Scheme Allocation Funds Received Utilized Unutilized (Lapsed)
DCA 2 0 0 2
PM–Ayushman 165 124 63 102
NAM 50 50 22 28
Human Resources 314 180 179 136
NHM – Health System 1,417 1,225 1,127 290
Total 1,947 1,579 1,391 557
