The quality of health services is low in the mountain States for all sections of the society and is worse especially for women and children. People are required to travel longer distances for checkups and diagnostic or therapeutic treatment. The trained medical staff is not adequate and to add more to the problems of the remote areas, the proper infrastructure facilities such as roads, transportation etc are largely absent. The facilities provided in the other States are also not sufficient and still require a lot of investment.

The Government of India introduced the Fiscal Responsibility and Budget Management Bill for the first time in the Parliament in 2000. There were five aspects which led to the introduction of the FRBM Bill[1], they were: first, large proportion of GDP was under deficit; second, the composition of the deficit with the sizable revenue deficit in particular that goes to finance current consumption of the government and the primary deficit (which is the fiscal deficit less interest payments); third, the growing debts which are also the accumulated deficits from the past; fourth, the growing interest burden on public debts which is an obligatory expenditure and constrains the flexibility available with the government in resource allocation; fifth, financing the high deficit through borrowings from the Reserve Bank of India[2].