Health Sector Budgeting for the Revival of Global Economy

Abstract

Aside from various economic crises faced by different countries are different time , the countries, and sometimes the world as a whole, have faced serious pandemics such as Spanish Flu, Ebola, bubonic plague and the recent COVID 19, among others. In order to boost the economy, the government tends to introduce different stimulus, relief and financial packages in favour of the citizens of its country. The government is inclined to follow the Keynesian model as it focuses on increasing the demand of consumers. It is the need of the hour to realise the importance of health care for the growth and development of the economy as it has been observed that countries where the economic impact of the crisis is huge and prolonged, also suffer from a great impact on healthcare services. The following study concludes, after both theoretical and empirical analysis, that health expenditure plays a major role in increasing global GDP. Thus, the government should focus on increasing expenditures on health during any crisis. This reduces the amount of income spent by consumers on health care and provides them with security. Further, workers' efficiency increases at a great rate, as does their life expectancy. Higher efficiency is associated with higher output and thus higher growth.