Budget Preview

Healthcare and nutrition to the fore

FUNDS: Budget 2007 is expected to provide funds for the continuation of a range of schemes initiated by the Ministry of Healthcare and Nutrition for the welfare of the people in the country.

A total allocation of Rs. 38.44 billion has been allocated for Ministry of Health in 2006 estimates. Out of this amount, a total sum of Rs. 26.85 billion and Rs. 11.48 billion has been allocated on recurrent and capital expenditure respectively.

A major share of recurrent expenditure was on Personal Emoluments and Medical Supplies amounting to Rs. 22.45 billion.

The introduction of new salary circular and increased costs on Medical Supplies due to establishment of specialised care units in hospitals has resulted in increasing the recurrent expenditure during 2006. A total sum of Rs. 8.4 billion, was allocated on Medical Supplies in 2006.

During the year 2006, capital expenditure was mainly directed towards development of hospitals in undeserved areas of Kurunegala, Jaffna, Badulla, Nuwara Eliya, Matara ensuring equitable access to healthcare particularly for rural poor (These programmes will be continued in 2007).

The construction of Maternity Ward complex (Rs. 300 mn) and Oncology Unit at Kurunegala Teaching Hospital (Rs. 127 mn), development of Jaffna Teaching Hospital with JICA assistance (Rs. 1,700 mn), infrastructure development of 17 hospitals in less privileged areas (Budget Proposal, Rs. 300 mn) are some of the leading capital projects implemented targeting above objectives.

In addition, investment has been directed towards establishment of specialised units such as Neuro Trauma at National Hospital Colombo (Saudi funded), National Blood Transfusion Services (JBIC), Nephology at Maligawatta etc. during the year 2006.

Establishment of Korea-Sri Lanka Friendship Hospital at Godagama-Matara is another initiative which was commenced in 2006 at a total cost of Rs. 6.1 billion with Korean grant assistance.

Provision of Nutritional Food Package worth of Rs. 500 per month for Expectant Mothers and fresh milk worth of Rs. 200 per month for children between 2-5 years (Budget Proposals) are some of the key nutrition intervention programmes that was commenced in 2006.

At the end of September 2006, Rs. 276 mn has been provided to commence the initial work of these programmes in identified 9 AGA Divisions on pilot basis.

The programme on Nutritional Food Package for expectant mothers will be expanded to 119 AGA Divisions during this year (These programmes will be continued in 2007)

In addition to above programmes, World Bank funded Health Sector Development Project, Global Fund to Fight Against TB and Malaria, World Bank funded National STD/AIDS programme are some of the key preventive health projects implemented during 2006 (These programmes will be continued in 2007).