NHM funds: Centre-state deadlock over, but no clarity on pending ₹621 crore
The Punjab government resolved a funding dispute with the Centre, receiving ₹123 crore but risks losing ₹621 crore for 2023-24 due to clinic naming issues.
Even as the central government has released the first instalment of National Health Mission (NHM) funds after the end of impasse with the Punjab government over naming of health and wellness clinics (HWCs), the fate of state’s share worth over ₹621 crore frozen for the 2023-2024 financial year hangs in balance.

The centre had stopped the NHM funds for Punjab in February 2023, claiming that the Mann government was branding the centrally sponsored health and wellness clinics as Aam Aadmi Clinics (AACs). Since then, the centre has not released funds to the tune of ₹621 crore even though it is supposed to bear 60% of the expenses as per the NHM funding pattern, a senior health department functionary of Punjab said.
The deadlock that lasted over one and a half year ended on Tuesday with the Union government releasing first instalment of ₹123 crore. According to senior health officials, the funds released are for the current financial year.
“What can be state’s loss is ₹621 crore which the state was due to get for 2023-24. There is no written clarity on the issue yet by the centre, but the state may loose this as officials of the Union health ministry have indicated that since Punjab changed the names of health and wellness centres, it should not get the share from the time when dispute began,” said a senior official.
The latest instalment was released after the Punjab government, in a U-turn from its earlier stand, agreed to remove the picture of chief minister Bhagwant Mann from over 600 clinics, earlier called Aam Aadmi Clinics (AACs).
The state government has agreed to rename health wellness clinics as Ayushman Arogya Kendras and also agreed to remove the tag of AACs. Now, the centre will do its own branding on these clinics.
The state will continue to use CM’s picture on the AACs which were set up by the state of its own. Even as health and family welfare minister Balbir Singh was not available for comments, a senior health functionary, who was part of the deliberations held with the Union health ministry on NHM fund dispute, disclosed that after resolving the issue, they have strongly put forward Punjab’s case to get funds for 2023-24.
“It’s a fact that the Union health ministry has indicated about not making payments for the previous year, but we have decided to put forward our case once again,” said the senior functionary.