National Health Systems Resource center (NHSRC) has commissioned the IHS to to analyze the public health expenditure by the Department of Health, Medical and Family Welfare (DoHMFW) both for the States of Andhra Pradesh and Madhya Pradesh. The exercise/study was completedby adopting a National Health Accounts (NHA) framework for health expenditure analysis and National Commission for Macroeconomics Health(NCMH) classification for defining primary, secondary and tertiary care sectors for the identified financial indicators which helps for regularmonitoring of the NRHM programme.