
Budget 2023-24 can be seen as the first Union budget since the recovery from the pandemic, in which the health sector did not receive much focus, unlike the previous two years. We can note a marginal reduction in the share of health in the aggregate Union budget, which was 3.6% in 2021-22, fell to 2.7% in 2022-23 and stands at 2.4% in 2023-24. The fact that draws even more attention is the 15% decline in the revised estimate of the Union health budget for 2022-23 compared with the budgeted amount for that year. In the ministries of health and family welfare and AYUSH, the revision in budget allocation for 2022-23, is due to the reduction in fund allocated for Central Schemes and Centrally Sponsored Schemes (CSS). The government has undertaken several efforts to improve the financial management system and reduce efficiency losses in fund transfers. The Ministry of Finance revised the system of Centre-to-State fund flows after introducing the PFMS or Public Finance Management System in 2022 to enhance transparency in use the of CSS funds and improve the Union government’s cash management.
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