Health Ministry May Halt Funding to Punjab for Ayushman Bharat Over Alleged Scheme Renaming
Posted on June 21, 2025 by admin
By Staff Reporter
February 22, 2023 | New Delhi
The Union Health Ministry is likely to suspend funding to the Punjab government under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), citing concerns that the state is allegedly projecting the central scheme under its own ‘Mohalla Clinic’ brand.
Sources in the ministry claim that the Aam Aadmi Party (AAP)-led government in Punjab has not been giving due recognition to the Ayushman Bharat scheme. Instead, the health services and infrastructure built under the centrally sponsored initiative are being showcased as part of the state’s Mohalla Clinic programme.
The Ayushman Bharat scheme provides health insurance cover of up to ₹5 lakh per family per year for secondary and tertiary care hospitalization to over 50 crore beneficiaries across India. The Centre bears 60% of the cost in most states, including Punjab.
The Health Ministry is reportedly considering withdrawing financial support, stating that it cannot allow a centrally funded scheme to be “rebranded or diluted.”
Political Tensions Rise
The issue has sparked fresh tensions between the BJP-led central government and the AAP government in Punjab. The Centre alleges that the AAP is “politicizing welfare” by hiding the contribution of the Union government, while the Punjab government is yet to release an official statement.
Sources close to the Punjab health department argue that Mohalla Clinics serve a different purpose — focusing on primary healthcare and preventive services, while Ayushman Bharat is aimed at hospitalization and tertiary care, and the two schemes can coexist.
Public in Confusion
This funding conflict has led to confusion among beneficiaries, particularly those relying on cashless treatment under Ayushman Bharat. Health experts warn that any disruption in scheme funding could adversely impact lakhs of underprivileged families in Punjab.
As the standoff continues, all eyes are now on the Punjab government’s official response and whether a compromise can be reached to protect the interests of patients.
