Health Insurance Liabilities Twice Budgeted Amount; Government Orders No Spending Without Secured Funding

Kathmandu — Health and Population Minister Dr. Sudha Sharma Gautam says the Health Insurance Board’s spending without assured funding and approval from the Finance Ministry has placed a heavy financial burden on the state.

Speaking at the 18th anniversary celebration of Patan Academy of Health Sciences, the minister said that Rs 1 billion allocated for health insurance in the current fiscal year has already been spent. She expressed concern that the board, by running programs without securing funding, has created liabilities now equivalent to about Rs 2.4 billion annually—more than double the budgeted amount.

Dr. Gautam emphasized that government spending must stay within the approved budget, noting that public health services are financed by taxpayers’ money, not from some external source. She warned that without guaranteed funding, unrestricted service provision has strained the system and urged tighter fiscal discipline.

According to her, although the board has complained about lack of funding, the government has allocated Rs 1 billion this fiscal year for health insurance. She stressed that spending beyond budget limits is not permissible without agreement from the Finance Ministry.

Dr. Gautam said that failure to secure funding before running programs has led to liabilities equivalent to roughly Rs 2.4 billion in annual obligations, underscoring the need for careful budgeting and approval before expenditure.