Chaudhary said a sum of Rs. 50 crore were given for providing free medicines but state hospitals still lacked such medicines.
The minister said that a grant of Rs. 10 crore to Punjab had been discontinued as state government had not removed Chief Minister's photo from 108 ambulances.
She also expressed disappointment over the pitiable condition of civil hospitals in Phagwara.
Union minister said that generic medicines should be prescribed to poor patients in order to make healthcare system more affordable.
"Generic medicines are cost-saving and much cheaper than the branded ones," she said.
However, she said since health was a state subject, the Centre could not force states for prescribing generic drugs.
The minister also announced that an MoU was signed between the Health Ministry and the ministry of human resources of Hungary for co-operation in the field of traditional systems of medicine.
She said MoU will give boost to co-operation between the two countries in the field of traditional systems of medicine.