DEBT FINANCING MECHANISMS FOR HEALTH CARE DURING THE WAR
DOI:
https://doi.org/10.56197/2786-5827/2024-3-4-9Keywords:
health care financing, fiscal space, public finances, public debt, debt swapsAbstract
Introduction. In the context of war, there are not only numerous destructions of industrial, transportation, and social infrastructure, as well as casualties among the population, but also destructive changes in the existence of society, including those caused by the crisis in the health care. Health care issues also arise due to insufficient financial support for the sector and the government's inability to maintain the fiscal space. In such a situation, there is a need to implement alternative methods of financing of health care, one of which is debt swap.
Materials and Methods. An evaluation was conducted on the trends and characteristics of the transformation of budget financing of Ukraine's health care, based on statistical analysis of data on the execution of state and local budgets of the Ministry of Finance of Ukraine; the prerequisites for the implementation of alternative financial mechanisms for the sector were identified.
Results and Discussion. Under the conditions of martial law, the functioning and financing of health care in Ukraine remain relatively stable. However, destructive processes have been identified, leading to a reduction in the fiscal space available for health care, along with pressure factors that may cause its further decrease. One of these pressure factors is the growth of public debt. Given this, the implementation of debt swap for health care has been proposed as a means of converting public debt and rise relevant funding for health care.
Conclusions. The implementation of debt swap for health care in Ukraine will require legislative adaptation and the development of methodological support. These debt mechanisms could help expand the fiscal space for health care in Ukraine and improve debt sustainability.
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