Finian McGrath
Question:312 Mr. F. McGrath asked the Minister for Health and Children if it is possible to progress our total expenditure to 7.7% of GDP as a major step in improving the health service. [14332/03]
Written Answers. - Departmental Expenditure.
While it is useful to examine spending as a percentage of GDP, the Deputy should be aware that setting such a target for health expenditure is not ideal. A target spend in a particular area could result in a decrease in expenditure should overall GDP decrease. Also, increases in GDP reflect growth on the basis of the economy expanding over a period of time. While the amount committed to the health service may increase significantly in real terms, the percentage committed may fall due to overall GDP growth. OECD figures, for example, indicate that public expenditure on health as a percentage of GDP in Ireland fell from 5.2% in 1999 to 5.1% in 2000, although investment by the Government actually increased by 17% in the same timeframe. However, experience from 1997 to 2002 has shown that increases in the level of health funding have in fact outstripped the rate of increase in GDP by an annual average of 6.4%. Evidence from the World Health Organisation also indicates that greater expenditure on health does not necessarily translate into a better performing health service.
The health strategy, Quality and Fairness – a Health System for You, identified a number of measures to deliver a better health service, including many of the recommendations of the value for money audit of the health service carried out by Deloitte and Touche. Additionally, a review of health delivery structures, both internal and external, has been undertaken by Prospectus Consultancy. These reports will inform future decisions by the Government on the most efficient and effective methods for the funding and delivery of the health service.