Health Care Budgets in a Changing Political Economy

A meaningful analysis of recent health budgets can only be made in the context of the direct and indirect encouragement given by the state to the growth of the private sector in health services. First, the slowing down of state investment in the hospital sector and the subsidies, soft loans and duty and tax exemptions offered; second, the creation of a market for modern health care through the setting up of PHCs and cottage hospitals in the rural areas; and third, the consistent expansion in highly qualified medical personnel who could not be absorbed in the state sector.