Rs 9,000 Crore in Unpaid Dues Threatens New Projects and Healthcare Services
Mumbai, May 11 — The Maharashtra public health department is reeling under mounting financial pressure, triggered by unchecked overspending on construction projects and poor planning. Senior officials have warned that the situation could soon stall vital new health infrastructure initiatives, compromising the state’s ability to deliver basic healthcare services.According to department sources, permissions for numerous construction projects, including primary health centres and testing labs, were approved without adequate assessment of the department’s financial standing. This mismanagement has left the department with unpaid dues of Rs 9,000 crore to building contractors alone.
Incomplete Projects and Budget Overruns
"Many projects were sanctioned without evaluating whether they were financially or operationally feasible. If we don't cancel incomplete and non-essential works, we won't be able to complete or start any new infrastructure,” a senior health official stated.While the department receives Rs 500 crore annually as part of its core budget, the majority of this amount is consumed by recurring expenses such as the procurement of ambulances and the continued construction of health institutions.
“These ongoing costs are eating into our planned allocations. We’ve crossed sustainable limits,” the official warned.
Funding Gaps and Mounting Liabilities
Out of the Rs 9,000 crore in dues, Rs 7,500 crore is expected to be cleared by the state treasury and the remaining Rs 1,500 crore through the National Health Mission (NHM). Officials have called this scale of liability “unsustainable,” adding that it poses a long-term risk to healthcare delivery in the state.The department has also faced scrutiny for previous procurement decisions, including the purchase of ambulances, mortuary vans, and hiring cleaning services for hospitals. Irregularities in the tendering process have drawn criticism and weakened public trust.
Budgetary Shortfalls and Staff Vacancies
Although the National Health Policy mandates that at least 8 per cent of the state’s annual budget be allocated to public health, Maharashtra has consistently spent around 5 per cent in recent years. This shortfall has affected core services, according to health officials.Compounding the issue is a severe manpower crunch. A Comptroller and Auditor General (CAG) report filed in December last year revealed that nearly 42 per cent of sanctioned posts—including doctors, nurses, and support staff—remain vacant across government hospitals.
"What good are new buildings if we do not have the staff to run them?" asked an official, highlighting the mismatch between infrastructure expansion and operational capability.
Outlook
With limited staff and ballooning infrastructure liabilities, Maharashtra’s public health department is at a critical juncture. Unless immediate steps are taken to rationalize spending, reassess project approvals, and bolster workforce recruitment, the state risks eroding the quality of healthcare services for millions.Keywords: Maharashtra health department crisis, healthcare infrastructure, Rs 9000 crore dues, NHM funding, staff vacancies, CAG report, public health budget, healthcare overspending
