Bombay HC Reprimands State Govt Over Underutilized Healthcare Budget

The Bombay High Court on Friday reprimanded the Maharashtra government for not fully releasing or utilizing the allocated budget for the procurement of drugs and medical equipment, asserting that this practice was causing a lapse in funds detrimental to the healthcare system.

A bench of Chief Justice D K Upadhyaya and Justice Arif Doctor sought clarification from the government on the steps taken to spend the budget, reasons for the partial release in the past, and the underutilization of the released funds.

The division bench was hearing a batch of petitions, including one initiated suo motu, expressed concerns about the high number of deaths in government hospitals in Nanded and Chhatrapati Sambhajinagar districts.

Advocate General Birendra Saraf informed the bench that, in compliance with earlier orders, the government has appointed a chief executive officer for the Maharashtra Medicines Procurement Authority, and the tendering process for drug and equipment procurement has commenced.

The court expressed the expectation that the procurement process for these items accelerates. Chief Justice Upadhyaya questioned the government about the observed trend of not fully releasing the budget and the subsequent underutilization, emphasizing that this appeared to be a new pattern. The court underscored the impact on the healthcare system and urged the government to take steps to prevent the lapse of the budget.

The state government was directed to submit an affidavit by February 1, 2024, providing details on the budgetary allocation, reasons for partial release, and the utilization of funds, along with information on how the government was addressing hospital demands across the state.

Additionally, the court directed the state government to expedite the recruitment process to fill vacant positions in hospitals, noting that one-third of posts were still unfilled. The court emphasized the urgent need to expedite recruitment to address the staffing shortages.

Advocate General Saraf assured the court that the government was making efforts to address the concerns raised, stating that most vacant positions in hospitals would be filled by the end of December. However, he acknowledged that recruitment for some positions might take additional time.