Underutilised funds, "dire status" of Mohalla clinics & COVID mismanagement: CAG report on AAP’s healthcare failures
August 16, 2026
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Underutilised funds, “dire status” of Mohalla clinics & COVID mismanagement: CAG report on AAP’s healthcare failures

The CAG report tabled in the Delhi Assembly exposed severe mismanagement in Delhi’s healthcare system under the AAP government, highlighting underutilised funds, project delays, staff shortages, and inadequate medical infrastructure.It also criticised the handling of the COVID-19 crisis, revealing unspent central funds and failure to meet promised hospital expansion targets

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Feb 28, 2025, 06:00 pm IST
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Delhi Chief Minister Rekha Gupta on February 28, tabled the report of Comptroller and Auditor General on Public Health Infrastructure and Management of Health Services in Delhi Assembly, which revealed underutilisation of funds, delays in project execution, shortage of staffs and drugs under the Aam Aadmi Party government.

According to the CAG report, the AAP-led government in Delhi ‘grossly’ mismanaged the COVID pandemic in the national capital using only Rs 582.84 crore of the total Rs 787.91 crore released by the central government.

The CAG performance audit report 5 of the year 2024 for the period 2016-17 to 2021-22 reviewed the “dire status” of Mohalla clinics under the previous government’s Mohalla Clinic scheme.

The report stated that 21 Aam Aadmi Mohalla Clinics did not have toilets, 15 did not have a power backup, six did not have any table for check-up and 12 did not have accessibility for the physically disabled. Similar was the situation of the AYUSH dispensaries, with 17 of the 49 inspected dispensaries having no power backup, 7 having no toilet, and 14 having no facility for drinking water.

The CAG report said that funds released for expenditure for Human Resources remained heavily unutilised, demonstrating underpayment of health staff, and lower deployment of health workers. Rs 52 crore was allotted for the same but only Rs 30.52 crore was utilised, it said.

Rs 83.14 crore of the released Rs 119.85 crore for drugs and supplies, including PPE and masks, remained unutilised.

The CAG report also revealed that despite the heavy demand for hospital beds, only 1357 beds, rather than the promised 32,000 beds, were added in the budget years from 2016-17 to 2020-2021.
The report noted that only three new hospitals were completed under the AAP government, and the final cost was much higher than the tendered cost.

CAG report mentioned a shortage of manpower in hospitals, waiting times of up to six to eight hours for surgeries, and non-functional equipment.

According to the report, in the Rajiv Gandhi Super Speciality Hospital (RGSSH), six modular/semi-modular OT, Stone Centre, Transplant ICU and Wards, Kitchen, 77 private/ special rooms, 16 ICU beds, 154 general beds and Resident Doctors Hostel were not functional.

In Jankpuri Super Speciality Hospital, 7 Modular OTs, Kitchen, Blood Bank, Emergency, Medical gas Pipeline, 10 CCU Beds and 200 General Beds were not operational. Bed occupancy was only 20-40 per cent. Moreover, there was no permanent arrangement of Specialist Doctors and Senior Residents for 24-hour emergency services available in the Sushruta Trauma Centre of Lok Nayak Hospital.

The report states that out of 27 Hospitals, ICU services were not available in 14, Blood Bank services were not available in 16, Oxygen services were not available in 8, Mortuary services were not available in 15, and Ambulance services were not available in 12 Hospitals.

The fund under Reproductive, Maternal, New-born Child and Adolescent Health (RMNCH) schemes remained underutilised. Underutilisation of funds ranged from 58.90 per cent (2016-17) to 93.03 per cent (2019-20), indicating that the GNCTD was not implementing the programme adequately, the CAG report noted.

(with inputs from ANI)

Topics: AAPhealthcareaap governmentCAG ReportCOVID mismanagementAam Aadmi Mohalla Clinics
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