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Budget cap threatens years of Nepal’s healthcare gains - P4H Network

Budget cap threatens years of Nepal’s healthcare gains

In the upcoming fiscal year 2025-26, Nepal will not initiate any new healthcare programs due to budget cuts, raising concerns about the sustainability of vital public health achievements, particularly in areas like maternal and child health. Officials from the Department of Health Services warn that reduced funding could jeopardize progress and disrupt essential health initiatives, urging the government to reconsider the impacts of these cuts.

In the upcoming fiscal year 2025-26, no new healthcare programs will be launched in Nepal due to significant budget cuts, raising concerns about the sustainability of public health achievements. Officials from the Department of Health Services relayed these concerns to the Ministry of Finance, highlighting the risks of reversing progress made through years of investment. The Ministry of Finance has set a budget ceiling of Rs83 billion for the Ministry of Health and Population, which is Rs3 billion less than the previous year’s allocation.

In a recent meeting, health officials urged the finance ministry to reconsider the impacts of reduced funding on vital public health initiatives, including maternal and child health, immunization, nutrition, and more. However, they were advised to collaborate with the Ministry of Health and Population’s leadership to prioritize the budget within the established ceiling instead.

Dr. Bibek Kumar Lal, director at the Family Welfare Division, expressed concerns that new healthcare programs cannot be initiated and warned of potential setbacks to progress achieved thus far. This budget reduction has forced the Health Ministry to cut funding to various departments significantly. For instance, the Family Welfare Division’s budget is slashed by Rs520 million, impacting numerous programs. Similarly, the National Centre for AIDS and STD Control reported a Rs55 million budget decrease, threatening even the continuity of essential services like antiretroviral treatments and HIV testing. The budget cuts could compromise significant health initiatives associated with maternal and child health, immunization, nutrition, HIV, tuberculosis, and non-communicable diseases, including mental health.

Dr. Tanka Prasad Barakoti, director general at the Department of Health Services, acknowledged that no new programs will be introduced in the next fiscal year and stressed the need for the government to appreciate the consequences of these budget cuts. Recent reports from the World Health Organization (WHO) indicate that Nepal has made substantial progress in reducing maternal deaths, decreasing the rate by over 70% since 2000. Currently, the maternal mortality rate stands at 142 deaths per 100,000 live births, a decline from 151 in a 2021 study.

However, the WHO warns that urgent investment is essential to maintain this progress and prevent maternal deaths. Public health experts express concern over the potential setbacks caused by budget cuts, particularly as many healthcare programs have already been disrupted following the suspension of foreign assistance by the US government at the start of Donald Trump’s presidency. They emphasize the critical need to prioritize women’s and newborns’ health to meet Sustainable Development Goals effectively, urging for increased investment in these areas to avert a regression in public health outcomes in Nepal.

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