Health Minister warns insurance board spending strains state budget
Minister Gautam said that the Rs 1 billion allocated for health insurance in the current fiscal year has already been spent.
KATHMANDU: Health and Population Minister Dr. Sudha Sharma Gautam has raised concerns over the financial burden on the state caused by the Health Insurance Board’s spending without secured resources or approval from the Ministry of Finance.
Addressing the 18th anniversary of Patan Academy of Health Sciences, Minister Gautam said that the Rs 1 billion allocated for health insurance in the current fiscal year has already been spent.
She expressed dissatisfaction that the board’s programs, implemented without assured funding, have created annual liabilities totaling Rs 2.4 billion.
She emphasized that government funds come from taxpayers’ hard-earned money, not from trees, and must be spent within the approved budget.
Unplanned disbursements, she noted, have led to systemic issues in health service delivery.
Minister Gautam also highlighted that the constitution recognizes free healthcare as a fundamental citizen’s right and that local governments carry the primary responsibility for its implementation.
She stressed that local authorities must ensure services are effective, accessible, and financially sustainable, urging the insurance board to act responsibly.
Lalitpur Metropolitan City Mayor Chiri Babu Maharjan reaffirmed the city’s commitment to covering health program costs in collaboration with Patan Hospital if the federal government fails to make insurance payments.
Speaking at the same anniversary event, Mayor Maharjan warned that delayed payments jeopardize hospital operations and said the metropolitan office would take responsibility for any service interruptions. He clarified that if the federal government formally authorizes or assigns payment responsibility to the city, Lalitpur Metropolitan will fulfill it.
The mayor also announced that a new health center, established with technical guidance from Patan Hospital, will soon begin operations, providing high-quality services to city residents through the National Health Insurance Program.
He hailed the partnership between Patan Hospital and Lalitpur Metropolitan as a model initiative that could serve as an example for the other 753 local governments nationwide.
Mayor Maharjan noted that Lalitpur Metropolitan City has emerged as an exemplary local government among Nepal’s 752 municipalities.
