Untied Funds

There was an urgent need to strengthen the Subcentres and to also decentralize its functioning to improve the quality of services and make it community friendly. For the first time in the history of the FW programme it was proposed to provide untied funds.

  1. As part of the National Rural Health Mission, it is proposed to provide each sub center with Rs.10,000 as an untied fund to facilitate meeting urgent yet discrete activities that need relatively small sums of money

  2. The fund shall be kept in a joint bank account of the ANM and the Sarpanch.

  3. Decisions on activities for which the funds are to be spent will be approved by the Village Health Committee (VHC) and be administered by the ANM. In areas where the sub center is not co-terminus with the Gram Panchayat (GP) and the sub center covers more than one GP, the VHC of the Gram Panchayat where the SC is located will approve the Action Plan. The funds can be used for any of the villages, which are covered by the sub center.

  4. Untied Funds will be used only for the common good and not for individual needs, except in the case of referral and transport in emergency situations.

  5. Suggested areas where Untied Funds may be used include:

    Minor modifications to sub center- curtains to ensure privacy, repair of taps, installation of bulbs, other minor repairs, which can be done at the local level
    · Ad hoc payments for cleaning up sub center, especially after childbirth.
    · Transport of emergencies to appropriate referral centers
    · Transport of samples during epidemics.
    · Purchase of consumables such as bandages in sub center
    · Purchase of bleaching powder and disinfectants for use in common areas of the village.
    · Labour and supplies for environmental sanitation, such as clearing or larvicidal measures for stagnant water.
    · Payment/reward to ASHA for certain identified activities

    6. Untied funds shall not be used for any salaries, vehicle purchase, and recurring expenditures or to meet the expenses of the Gram Panchayat.


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