One of the major milestones of Goal 3 of the Sustainable Development Goals is universal health coverage (SDGs). Universal Health Coverage (UHC) means that all individuals and communities have access to the health care they require without financial hardship. It encompasses the entire range of essential, high-quality health services, from health promotion to prevention, treatment, rehabilitation, and palliative care throughout the lifespan (WHO).
The financing of health care is a critical factor in achieving UHC. Health care in Ghana is largely funded by the government and donors. Since 2000, the government has spent less than 5% of its Gross Domestic Product (GDP) on health care. This level of health-care investment is woefully inadequate. According to research, the government will need to increase its investment.
In health, at least 10% of GDP is required to achieve the desired levels of health-care quality and coverage in the country.
Unfortunately, now that the country has achieved lower-middle-income status, donor funding for health care is starting to dwindle.
To accelerate the attainment of UHC, the government must play a larger role in health financing. The current high level of medical tourism among politicians and many affluent Ghanaians to the United Arab Emirates, South Africa, India, the United Kingdom, the United States of America, and many other countries is a result of inadequate health-care investment.
Health Care Financing in the Future
Raising domestic public funds, according to the WHO, is critical for UHC. Without increasing reliance on public revenues, no country has made significant progress toward UHC. Domestic tax systems, which are critical to supporting the country’s fiscal space expansion, are thus central to the UHC agenda. This is the main reason why I will advise Parliament to pass the Electronic Transactions Levy Bill, if not in its current form, then in a modified form that takes into account Ghanaians’ opinions on the rate to charge. If the levy revenue is used wisely, it will prevent frequent government borrowing and its associated problems.
While the level of revenue is important, the allocation and use of these revenues are equally important.
Public Financial Management (PFM) systems are critical enablers for the proper formulation, execution, and accounting of government spending.
Additionally, dialogue between the Ministries of Health and Finance is required in order to strengthen domestic PFM Systems and improve budget practices.
Improving the efficiency with which public resources for health are used, aligning budget resources and health priorities, and closing the gaps between health budget allocation and expenditure are all important steps toward achieving UHC.
Conclusion
In Ghana, universal health coverage is a reality. Raising domestic revenue to finance health care is the most sustainable way to achieve UHC.
Based on the foregoing, I believe the E-levy should be approved, given the government’s limited borrowing options. In addition, I believe that the government should prioritize the health sector by increasing budgetary allocations.
ABOUT THE AUTHOR:
Iddrisu, Farouk Adam Farouk
MSC. (LONDON), BSC. (GHANA), LL.B. (GHANA)
SPECIALIST IN HEALTH POLICY, PLANNING, FINANCING, AND MANAGEMENT
MEMBER OF THE GHANA ASSOCIATION OF HEALTH CARE ADMINISTRATORS
