Sri Lanka’s public health spending as a share of GDP, at around 1.5 per cent, is low by international standards. This is compounded by inefficiencies in fund administration and allocation. A related problem is the lack of a proper system to forecast financial requirements well into the future. Currently, accounting is done based on an outdated cash basis, where expenditures are recorded only after incurring an expense.
Prioritisation and efficient allocation and utilisation of available funds are key to addressing the changing health and financing needs of Sri Lanka.
Well-developed and transparent accountability mechanisms are important in preventing wastage and inefficient allocation of resources. Accrual accounting systems need to be adopted in ensuring budget allocations are made for necessary medical equipment, treatment and caring facilities, as well as for training of healthcare personnel in relevant areas, which are typically long-term and costly investments.
To know more read the entire article published in Daily Mirror Online here.
Image Credits: Daily Mirror Sri Lanka
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