Annual Programme of Work 2005 - Ministry of Health

Internally Generated Funds and National Health Insurance Levy
Internally Generated Funds (IGF) are funds generated from user fees. Internally
generated Funds are collected and retained by BMCs and are designed to recover the
complete cost of drugs and partial cost of non drugs consumables used in the provision of
health care. A small consultation is also charged by health institutions. The National
Health Insurance Scheme is designed to replace user fees. Both IGF and NHIL will
contribute to the resource envelope and specifically to service budget (Item 3). However,
they are not allocated centrally because BMCs will collect and retain such finds locally
for services rendered.
Allocation of Other Components of the Health Budget
The rest of budget in the consolidated budget i.e. ¢2,452.78 billion has been allocated to
all BMCs using the resource shift targets proposed in the five year programme of work.
Table below shows the allocation to BMC categories.
Table 7: Percentage distribution of non-wage Recurrent budget (Items 2 and 3)
TOTAL
PERSONAL
EMOLUMENT ITEM 2-4 TOT 2&3 ADMIN ADMIN ADMIN TOT
SERVI
CE SERVICE TOT INVEST INVEST
TOT GOG DONOR SERVICE GOG DONOR INVEST GOG DONOR %
non-wage
recurrent
TOTAL HEALTH 2,452,781 1,328,975 1,123,806 524,194 202,834 95,716 107,118 321,360 73,659 247,701 599,612 53,577 546,035 100
Ministry of Health hq 1,311,860 765,248 546,613 64,774 23,330 10,462 12,868 41,444 11,411 30,033 481,839 21,000 460,839 12.4
Training Institutions
total 86,620 55,527 31,093 31,093 11,236 5,013 6,223 19,857 5,467 14,390 - - - 5.9
G.H.S. HQ 96,056 8,974 87,082 53,082 19,182 8,558 10,624 33,900 9,334 24,567 34,000 9,000 25,000 10.1
Psychiatric Hospitals 46,155 13,893 32,262 31,562 11,405 5,088 6,317 20,157 5,550 14,607 700 700 - 6.0
Regl H. Service 128,998 66,742 62,255 51,440 18,950 8,454 10,495 32,491 8,221 24,270 10,815 10,815 - 9.8
District Hlth Serv 538,625 321,018 217,607 212,607 89,878 45,321 44,557 122,729 19,695 103,034 5,000 2,000 3,000 40.6
Subvented
organizations 62,242 13,476 48,766 27,855 10,143 4,471 5,671 17,713 4,877 12,836 20,911 715 20,196 5.3
Teaching Hospitals 182,225 84,097 98,128 51,781 18,712 8,348 10,363 33,070 9,105 23,965 46,347 9,347 37,000 9.9
Ring-Fencing
The Ministry ring has fenced ¢879.98 of the component of the budget and lodged it in
specific BMCs. These funds were ring-fenced to protect critical areas of the programme
of work from the risk of under funding which might arise after funds have been disbursed
to BMCs. Ring fencing is also used as an instrument for improving resource allocation
within the sector by ensuring that the resource allocation pattern emphasises poverty
alleviation and equity. Table 4 shows activities for which funds have been ring-fenced
and where such funds have been lodged. Table five the relationship between the ring
fenced budget and the total budget.
Ring fenced budget
Table 4: Allocation of Ring- fenced areas
2005 Resource Allocation (in billions of cedi)
Item 1
Amount (billion Where lodged
cedi)
Recruitment into the sector 26.53 Office of Minister
40