This policy paper attempts to present resource allocation, utilization, and absorption across four Indian states. It highlights key issues and provide recommendations to improve the health financing process that facilitate greater flexibility and efficiency in financing of the programs. The experiences of policy makers who have successfully handled systemic issues, developed best practices, and ensured results for the state have been included as a part of the learnings. Further, in terms of continued centre-state engagement in implementing health schemes, the current financial transfers for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) have been included as a case example.