Business Relationship Management

Health Expenditure Variables and Analysis

Across SAARC Countries

Group Members

2021 - BBIT - 42 (M.Shahzaib)

2021 - BBIT - 38 (M.Salman)
2021 - BBIT - 11 (Amama Sherdil)
2021 - BBIT - 16 (Usman )
2021 – BBIT – 91 (khubaib Ahmed)
Introduction

Health expenditure at the current and domestic levels refers to the financial resources
allocated to healthcare within a country. This encompasses expenses on medical
services, facilities, medications, and other health-related necessities. Current health
expenditure typically denotes the ongoing costs involved in delivering healthcare
services, while domestic health expenditure encompasses all health-related spending
within a country's borders, regardless of the funding source. Essentially, it represents
the investment a country makes in maintaining the health of its population, covering
everything from routine doctor visits to hospital stays and public health initiatives.

Impact of Health Expenditure Variables and Analysis Across

SAARC Countries

Health expenditure is a critical indicator of a nation's commitment to the well-being of its

citizens and the overall healthcare system's efficacy. Four key variables offer insights
into a country's healthcare spending and its implications for public health and economic
development:

Current Health Expenditure (% of GDP):

This variable reflects the proportion of a country's Gross Domestic Product (GDP)
allocated to healthcare. A higher percentage suggests a greater prioritization of health
within the national budget. A rise in this percentage typically indicates increased
investment in healthcare infrastructure, services, and personnel, potentially leading to
better health outcomes and increased access to medical care.

Current Health Expenditure Per Capita (Current US$):

This metric measures the average spending on healthcare per individual in a country,
denominated in current US dollars. A higher expenditure per capita generally correlates
with better healthcare access, improved medical facilities, and a wider range of services
available to citizens. It indicates the financial resources allocated to each person's
health needs, which can significantly impact health outcomes and overall quality of life.

Domestic General Government Health Expenditure Per Capita (Current US$):

This variable specifically focuses on the healthcare spending per capita by the
government. It reflects the direct financial commitment of the government towards
healthcare services and infrastructure. Higher government health expenditure per capita
suggests a greater role of the state in ensuring access to healthcare for its citizens,
potentially leading to more equitable healthcare access and improved public health indicators.

Domestic General Government Health Expenditure (% of Current Health

Expenditure):

This metric indicates the proportion of total health expenditure that is covered by the
government. A higher percentage implies a larger share of healthcare costs being borne
by the government, which can alleviate the financial burden on individuals and
households. It reflects the extent of government intervention and support in healthcare
financing, which is crucial for ensuring universal health coverage and reducing
disparities in access to care.

Analysis Across SAARC Countries:

The SAARC (South Asian Association for Regional Cooperation) region consists of
eight member countries, each with its unique socio-economic characteristics and
healthcare systems. Here's a brief overview of how these variables manifest across
SAARC countries:

Current Health Expenditure (% of GDP):

Countries like Maldives and Bhutan allocate a relatively high percentage of their GDP to
healthcare, indicating a strong commitment to public health.In contrast, countries like
Afghanistan and Nepal may have lower percentages due to resource constraints and
other developmental priorities.

Current Health Expenditure Per Capita (Current US$):

Maldives and Sri Lanka typically exhibit higher per capita health expenditures, reflecting
better healthcare access and infrastructure.Afghanistan and Nepal often have lower per
capita spending, indicating challenges in healthcare accessibility and service provision.

Domestic General Government Health Expenditure Per Capita (Current US$):

Bhutan and Sri Lanka tend to have higher government health expenditure per capita,
demonstrating significant state investment in healthcare.Afghanistan and Nepal may
have comparatively lower government spending per capita, indicating potential gaps in
public health financing and service delivery.
Domestic General Government Health Expenditure (% of Current Health
Expenditure):

Countries like Bangladesh and India may have a higher share of government health
expenditure as a percentage of total health spending, suggesting greater government
involvement in healthcare financing.However, variations exist within the region, with
countries like Pakistan and Afghanistan relying more on private healthcare financing
mechanisms.

Current health expenditure per capita (current US$)

Current health expenditure per capita (current US$) in World:

Healthcare spending is rising across Asia-Pacific nations. From 2010 to 2017,

low-income countries saw an increase from $173 to $247, while upper-middle and
high-income countries saw growth from $466 to $689 and $2,922 to $3,712,
respectively. However, there are significant disparities in healthcare spending, with
Bangladesh spending only $94 per person compared to Australia's $4,816. The typical
OECD healthcare spending per person in 2017 was 16 times higher than low-income
countries in Asia-Pacific.

Current health expenditure per capita (current US$) of SAARC countries

(Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri
Lanka):

The review explores how healthcare spending (HCE), economic development, and
wellbeing outcomes (like life expectancy, infant mortality, and the proportion of elderly
people) are connected in South Asian countries (Afghanistan, Bangladesh, Bhutan,
India, Maldives, Nepal, Pakistan, and Sri Lanka) from 1995 to 2010. It finds a long-term
connection between healthcare spending, economic growth, and wellbeing outcomes in
this region. However, it suggests that healthcare spending is considered a luxury in
these countries, as higher spending is associated with lower life expectancy and fewer
elderly people. There's also no significant link found between healthcare spending and
infant mortality, indicating it doesn't effectively reduce infant deaths. The study suggests
improving healthcare services' quality, utilizing the expertise of the aging population,
and implementing tax reforms and trade policies to address healthcare challenges in the
SAARC region.

Current health expenditure per capita (current US$) in Afghanistan:

In Afghanistan, medical services costs present huge monetary difficulties, prompting

horrendous wellbeing use (CHE) and impoverishment, especially deteriorated by
Coronavirus. Utilizing information from the Afghanistan Day to day environments
Overview 2016-2017, we saw that as 32% of the populace confronted CHE, driving
numerous into outrageous destitution. Factors, for example, training and business gave
some insurance, while being female, older, crippled, or debilitated expanded the
gamble. Provincial inhabitants and those encountering financial shocks were
additionally helpless. To address this, actions like better admittance to essential
wellbeing administrations, disposing of client charges for Coronavirus care, and
reinforcing the wellbeing funding framework are vital. Dastan, I., Abbasi, A., Arfa, C. et
al. Measurement and determinants of financial protection in health in Afghanistan.

Current health expenditure per capita (current US$) in India, Pakistan, Sri Lanka,
Maldives, Bhutan, Bangladesh and Nepal:

This study examines healthcare spending in seven South Asian countries—India,

Pakistan, Sri Lanka, Maldives, Bhutan, Bangladesh, and Nepal—from 1995 to 2013. It
focuses on personal medical care use. We analyze per-capita healthcare spending
differences and develop a model to understand personal consumption factors, including
per capita healthcare spending, household final consumption expenditure, and public
healthcare spending. Maldives has the highest per capita healthcare spending, while
India has the highest personal healthcare spending as a percentage of total healthcare
spending. Our findings highlight household expenditure as a key determinant of
personal healthcare spending. This study contributes to understanding healthcare
financing in developing economies, emphasizing household expenditure as a significant
factor.

Domestic general government health expenditure (% of general

government expenditure)

Domestic general government health expenditure (% of general government

expenditure) in world:

This study investigates what different government spending programs mean for
monetary development in agricultural nations, taking into account the issue of
concurrent impacts. Utilizing information from the World Bank, we find that Gross
domestic product development relies upon general wellbeing and training spending,
populace development, wellbeing consumption offer, and capital arrangement share.
These discoveries can direct policymakers in focusing on government spending to help
financial development. We use information from the World Improvement Markers (2008
and 2010) and a concurrent conditions model to break down the connections. Some
coefficient assessments may not line up with assumptions because of possible
collinearity among factors.

Domestic general government health expenditure (% of general government

expenditure) in SAARC:

The review looks at the nexus between government spending and monetary
development in the seven SAARC nations, specifically Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan and Sri Lanka, for the period 1970-2007. Utilizing board
cointegration and board causality, the paper finds that administration spending and
financial development is cointegrated, demonstrating the presence of long run harmony
connection between them. It additionally affirms the presence of bidirectional causality
between government spending and financial development, both in the short run and
long run, aside from Pakistan and Sri Lanka. The ramifications of this paper is that
expanded government spending is both reason and result of expanded financial
development.

Domestic general government health expenditure (% of general government

expenditure) in Afghanistan:

Afghanistan, plagued by conflict for two decades, shows signs of economic

improvement with a 2.5% GDP growth from 2016 to 2017. However, it faces challenges
such as low per capita income, poor security, health, education, and declining
commodities. Despite abundant mineral resources, corruption remains rampant, leading
to economic decline. Transparency International ranks Afghanistan as one of the most
corrupt countries globally. Limited development efforts make it one of the least
focused-on nations. This study examines Afghanistan's economy and provides a
framework for future research to assess its economic growth. It offers insights for
policymakers to combat corruption and enhance the nation's prosperity.

Domestic general government health expenditure (% of general government

expenditure) in Bhutan:
This proposal examines how different aspects of government spending affect Bhutan's
GDP growth from 1985 to 2015. We look at total spending, spending on things like
agriculture, information, and more. Our findings suggest that spending on agriculture,
information, and capital has a positive impact on GDP growth in the long term. However,
spending on international affairs has a negative impact. In the short term, there's not
much impact from spending, but deviations from the long-term path can affect GDP.
This suggests that focusing more on agriculture, information, and capital spending could
be beneficial for Bhutan's economy.

Domestic general government health expenditure (% of general government

expenditure) in Pakistan:

Pakistan's economy faces instability due to reliance on foreign debts and unstable
political and legal conditions. Agriculture is crucial, contributing over a fifth to GDP and
employing half of the workforce. Poverty is closely tied to agricultural growth, which has
been inconsistent. This study focuses on poverty connections, particularly in rural
Sindh. Results suggest that increasing foreign investment in manufacturing and
agriculture boosts capital accumulation, while government spending on infrastructure
and rural development creates job opportunities, especially for unskilled labor in rural
areas. Safeguarding the country's integrity through robust measures is essential for
accelerating economic development. Asghar, N., Awan, A., & Rehman, H. u. (2012).
Title of the article.

Domestic general government health expenditure (% of general government

expenditure) in India:

This paper analyzes what government spending in India from 1980 to 2015 means for
financial development, utilizing fundamental relapse examination. It finds that
administration spending by and large lifts Gross domestic product development, with the
exception of Unfamiliar Direct Venture (FDI) development. During the monetary
emergency of 2008, government spending adversely affected Gross domestic product
development, yet during the change time of 1991, it had a positive effect. Tests show no
issues with information precision or connection among factors. The review recommends
zeroing in more on formative spending, especially in foundation, for better monetary
development. It additionally prescribes changes at the state level to oversee uses
better, remembering drawing certain lines for ensures and taking into account project
gambles.

Domestic general government health expenditure (% of general government

expenditure) in Nepal:
This study looks at how governments spend money and its impact on the economy. It
breaks down government spending into categories and analyzes its relationship with
Gross Domestic Product (GDP). The main findings show that government spending on
capital has been decreasing since the 1990s, while spending on services is also
declining due to increased focus on repaying loans and interest. Although government
spending contributes to economic growth, its overall impact on GDP is not significant.
The study also finds that GDP is linked to periodic spending, investment, and the
workforce. Additionally, increases in recurring spending and investment positively affect
GDP in the short term. This highlights the importance of government spending, but it's
crucial to allocate resources efficiently for better economic outcomes. Mainali, P. K.
(2013).
Current health expenditure (% of GDP)

Current health expenditure (% of GDP) in South-East Asia Region:

The COVID-19 pandemic is severely impacting the South-East Asia Region, causing
both health and economic crises. Lockdowns and social distancing measures are
shrinking economies, leading to a projected 5.3% decrease in per capita income in
2020. This affects funding for healthcare, which is already low in many countries in the
region, and weakens preparedness for pandemics like COVID-19. To mitigate the
damage and improve healthcare, countries need to increase public spending on health,
especially on primary healthcare (PHC). They should focus on efficiency and equity,
directing funds towards the poor and vulnerable, reducing duplication of funding, and
cutting wasteful spending. The pandemic offers an opportunity to reevaluate and better
fund healthcare systems and PHC, which are crucial for both health outcomes and
economic recovery.

Domestic general government health expenditure (% of current health

expenditure)

Domestic general government health expenditure (% of current health

expenditure) in SAARC countries:

This paper explores the link between healthcare spending (HCE) and economic growth
in select South Asian countries. It analyzes data from 1995 to 2012 using statistical
methods like panel cointegration and causality analysis. Factors such as income per
person, workforce, literacy rate, and elderly population are considered. Findings
suggest that healthcare spending is influenced by economic growth, with evidence of
causality from GDP to HCE. Two-way causality is observed between GDP, workforce,
literacy rate, and elderly population. Additionally, there's a mutual relationship between
workforce, elderly population, and healthcare spending.

Conclusion:

The analysis of health expenditure variables and their implications across SAARC
countries provides valuable insights into the state of healthcare financing, service
provision, and public health outcomes in the region.

It's evident that health expenditure, whether measured as a percentage of GDP or per
capita spending, reflects a country's commitment to the well-being of its citizens. Higher
spending typically correlates with better healthcare access, improved infrastructure, and
enhanced health outcomes.

Across SAARC countries, significant variations exist in health expenditure patterns.

While some nations allocate a considerable portion of their GDP to healthcare, others
face challenges due to resource constraints and competing developmental priorities.

Government expenditure on healthcare plays a crucial role in ensuring equitable access

to services. Countries with higher government health expenditure per capita tend to
demonstrate a greater commitment to public health, potentially leading to improved
health indicators and reduced disparities in access to care.

However, challenges persist, particularly in ensuring efficient utilization of healthcare

resources and addressing disparities within and across countries. Issues such as
corruption, inadequate infrastructure, and limited access to quality healthcare services
remain significant barriers to achieving optimal health outcomes.

Moving forward, it is imperative for policymakers in SAARC countries to prioritize

healthcare financing, improve governance structures, and implement targeted
interventions to address the diverse health needs of their populations. Enhancing
collaboration and sharing best practices within the region can also facilitate progress
towards achieving universal health coverage and sustainable development goals.

In conclusion, a concerted effort is needed to strengthen healthcare systems, promote

equity, and ensure that every individual in the SAARC region has access to affordable,
high-quality healthcare services, ultimately contributing to improved health and
well-being for all.
Citations:

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outcomes in saarc region: health is a luxury?. Qual Quant 48, 1421–1437 (2014).
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Dao, M. Q. (2011). [Government expenditure and growth in developing countries].

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Pradhan, R. P. (2011). Government spending and economic growth in SAARC:

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