Health Minister Slams Insurance Board for Exceeding Budget, Creating Rs 24 Billion Liability

Kathmandu. Minister for Health and Population Dr. Sudha Sharma Gautam stated that the Health Insurance Board has imposed a significant financial burden on the state by incurring expenditures without ensuring sources of funding and securing consent from the Ministry of Finance.

Addressing the 18th anniversary of Patan Academy of Health Sciences, Minister Gautam informed that the 10 billion rupees allocated for health insurance in the current fiscal year has already been spent. She expressed dissatisfaction, noting that the Insurance Board's operation of programs without securing funding sources has currently created an annual liability equivalent to 24 billion rupees.

She emphasized the need to spend within the budgetary limits, as the government does not generate money from trees, and health service payments are made from the taxes diligently earned by citizens. According to her, the system has encountered problems because services were being provided indiscriminately without ensuring the necessary resources.

She stated, “You presented the issue by saying the ministry did not provide the insurance money. Now, I see that the Government of Nepal has allocated 10 billion rupees to insurance this fiscal year. We must operate programs within the perimeter of the annual budget. If we need to go beyond that, we must obtain consent from the Ministry of Finance. Now, our Insurance Board neither obtains source consent nor ensures funding, and expenditures have accumulated to the extent that spending is occurring, creating an annual liability of 24 billion rupees.”

She further added, “When asked where the government gets the money, the payment is made from the taxes paid by the hard-earned money of impoverished citizens. The government itself does not bring money from trees. We need to understand how to be frugal and how to utilize resources properly. But people seem to be waiting, thinking the government will just provide it. We are the government. We have forgotten that the money being given is what we have earned. 10 billion has already been spent at the beginning of this fiscal year, and it's still not enough. How did the Insurance Board work to run the entire year starting from zero? We kept providing services as much as we wanted without ensuring the source funding.”

Minister Gautam mentioned that the Constitution defines free health service as a fundamental right of the citizen, and the sole responsibility for its implementation lies with the local government. She expressed the view that local levels must make health services more effective and accessible.

Stressing the necessity of financial discipline and proper resource allocation for the sustainable management of the health sector, Minister Gautam urged the Insurance Board to be responsible. —News Agency Nepal