The Government of India (GoI) under itscommon minimum program is enhancing central funding tostates for effective delivery of essential health servicesto underserved populations residing in the rural areas ofthe country. Flexible financing is being provided to statesunder the National Rural Health Mission (NRHM) to developlocally relevant strategies to improve service delivery andimplement evidence-based interventions to enhance healthoutcomes of centrally sponsored schemes in the healthsector. Such rapid scaling-up of central allocations fordifferent health sector schemes will involve massiveprocurement of health sector goods by the states anddistricts that have capacity constraints to undertake healthsector procurement The NRHM framework notes that continuedcentral procurement is not a solution and proposes a phaseddecentralization of procurement to states and districts.This note supports the approach of phased decentralizationthrough development of an assessment tool for systematicallyidentifying the procurement capacity constraints at state level.
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