Discrepancy in Kerala Health budget: Minister's figures clash with Finance Department's allocation

Thiruvananthapuram: The financial allocation projected by the Finance Minister for the Department of Health does not align with the figures presented by the Health Minister in the Legislative Assembly.
Sources within the Health Department confirm that the figure of Rs 9,994 crore cited by Finance Minister K N Balagopal for the previous financial year represents the total allocation to the Department. They pointed out that it may include the Rs 506 crore allocated in 2024-25 for the purchase of medicines, but he did not give any details.
The Ministry of Finance says that the initial allocation for the Department of Health was Rs 9,667 crore and the additional amount was later allocated. Meanwhile, in the last financial year, due to the economic crisis, the government directed the departments themselves to set the budget for the projects and its priority and to cut the expenditure by up to 50 per cent. After the Cabinet directive, the project amounts were cut short in the Health Department. The usage of scholarship money also caused a huge controversy.
The allocation of Rs 590 crores marked for various projects, including the development of medical colleges, has been cut to Rs 447 crores. Health Minister Veena George herself submitted the document in this regard in the Assembly on March 3 in response to a question by MLA K Babu.
The Minister did not explain the allocation for the AYUSH section included in the budget, the state allocation for the Central schemes, etc. The controversy arose due to the cut in the amount initially allocated for medical colleges too. The Finance Department says that the amount thus cut may have been used in other areas by the Department of Health.
In the state budget, Rs 152.13 crore was initially allocated across 46 items for the renovation of hospitals, blood banks, laboratories and similar facilities under the Health Department. However, this amount was later reduced to Rs 90.02 crore during reallocation. Similarly, Rs 401.24 crore had been marked for the development of medical colleges and 36 other related items, but this too was slashed to Rs 254.35 crore during the budget restructuring process.
Restructuring of medical colleges
The expert committee investigating the revelation that treatment at the Thiruvananthapuram Medical College is being delayed due to a lack of surgical equipment is likely to submit its report to the Department of Health this week. The final report will be submitted after another sitting.
Based on the committee's findings, a comprehensive reshuffle is being considered across all medical colleges, including Thiruvananthapuram, at both teaching and non-teaching levels. The government is also exploring ways to streamline the process of procuring medicines and equipment using Hospital Development Committee funds. The committee's initial assessment supports the claims made by Dr Haris Chirakkal, finding them largely accurate.
Principals meeting
The treatment crisis at the Thiruvananthapuram Medical College was discussed in an online meeting of principals called by Health Minister Veena George on Tuesday. The Minister directed to take precautions to prevent treatment disruption due to a shortage of medicines, medical equipment and other supplies. She also asked teachers, department heads and office staff to work together.