Government Expenditure on Health
Loans register the highest growth in national government health expenditure
Total national government health expenditure registered a 10.1 percent growth, from P26.0 billion in 2004 to P28.6 billion in 2005. This was largely due to the 199.0 and 43.0 percent increases in loans and health expenditure of other national agencies, repectively. Declines were, however, noted in expenditure of DOH agencies and grants at 10.8 percent and 45.3 percent, respectively.
The increase in loans was attributed to the following projects of the DOH: Help for Catubig Agricultural Advancement Project Stage I, Health Sector Development Program, Rural Water Supply and Sanitation Project Phase V, and LGU Urban Water and Sanitation Project.
The DOH agencies continued to provide the bulk of health expenditure, funding 48.0 percent of the national government expenditure for health care, despite a negative growth of 10.8 percent from the previous year.
DETAILS OF NATIONAL GOVERNMENT HEALTH EXPENDITURE
2004-2005
DOH and its Attached Agencies / Other National Agencies / Loans / Grants / Total / DOH and its Attached Agencies / Other National Agencies / Loans / Grants
20041/ / 15,425.2 / 4,256.1 / 2,183.7 / 4,154.3 / 26,019.3 / 59.3 / 16.4 / 8.4 / 16.0
2005 / 13,764.5 / 6,086.4 / 6,529.8 / 2,270.8 / 28,651.4 / 48.0 / 21.2 / 22.8 / 7.9
2004-2005
Growth Rate / (10.8) / 43.0 / 199.0 / (45.3) / 10.1
1/revised
Spending of DOH agencies exhibits negative growth
Spending of DOH and its attached agencies decreased by 10.8 percent, from P15.4 billion in 2004 to P13.8 billion in 2005. Spending on public health care increased by 16.8 percent while spending on personal health care and other services exhibited declines of 13.4 percent and 19.8 percent, respectively.
Expenditure of DOH Agencies by Use of Funds
Year / AMOUNT (in million pesos) / PERCENT SHAREPersonal / Public / Others / TOTAL / Personal / Public / Others
20041/ / 10,204.7 / 2,034.8 / 3,185.7 / 15,425.2 / 66.2 / 13.2 / 20.7
2005 / 8,833.8 / 2,375.8 / 2,554.9 / 13,764.5 / 64.2 / 17.3 / 18.6
2004-2005 Growth Rate / (13.4) / 16.8 / (19.8) / (10.8)
1/ Revised
Note: DOH agencies are the Office of the Secretary - DOH, Dangerous Drugs Board, Lung Center of the Philippines, National Kidney and Transplant Institute, Philippine Children's Medical Center, Philippine Heart Center, and Population Commission
Government health spending remains far from the HSRA target
The share of government on health expenditure declined to 29 percent which is below the target of 40 percent based on the Health Sector Reform Agenda (HSRA). Also, the government's target to depend less on out-of-pocket payments and provide more social health insurance is still far from being realized as the share of out-of-pocket payments even increased to 49 percent while the share of social insurance payments increased only slightly to 11 percent in 2005. Based on the HSRA, the target for out-of-pocket is 20 percent while the target for social insurance is 30 percent.
USE OF FUNDS / SOURCE OF FUNDS / TOTAL BY USEGOVERNMENT / SOCIAL INSURANCE / PRIVATE SECTOR
Target / Actual / Target / Actual / Out of Pocket / Others / Target / Actual
Target / Actual / Target / Actual
2004 / 2005 / 2004 / 2005 / 2004 / 2005 / 2004 / 2005 / 2004 / 2005
(in percent)
Personal Health Care / 10 / 13 / 12 / 25 / 8 / 10 / 20 / 47 / 49 / 7 / 9 / 8 / 62 / 79 / 79
Public Health Care / 20 / 10 / 11 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 20 / 10 / 11
Others / 10 / 7 / 6 / 5 / 1 / 1 / 0 / 0 / 0 / 3 / 3 / 3 / 18 / 11 / 10
TOTAL BY SOURCE / 40 / 31 / 29 / 30 / 10 / 11 / 20 / 47 / 49 / 10 / 12 / 11 / 100 / 100 / 100
Note: To allow for comparison with HSRA targets, the percentage distribution of actual expediture by source of funds was adjusted by excluding the "other sources." Others under private sector include private insurance, HMOs, employer-based plans and private schools. As such, this is not exactly the same as the percentage share in table 2.5 on page 14.
Health expenditure from local government decreases
Local government spending on health declined by 6.1 percent or around P1.5 billion in 2005. Declines were noted in all the uses of fund - personal health care, public health care and other services. Expenditure on public health care remained the largest share of local government expenses on health at 46.5 percent
Local Government Health Expenditure by Use of Fund
YEAR / AMOUNT (in million pesos) / PERCENT SHAREPersonal / Public / Others / TOTAL / Personal / Public / Others
20041/ / 6,310.3 / 11,192.7 / 7,269.3 / 24,772.3 / 25.5 / 45.2 / 29.3
2005 / 6,008.3 / 10,819.0 / 6,443.2 / 23,270.6 / 25.8 / 46.5 / 27.7
2004-2005 Growth Rate / (4.8) / (3.3) / (11.4) / (6.1)
1/ Revised