THE IMPACT OF HIV/AIDS ON GOVERNMENT FINANCIAL AND PUBLIC SERVICES

The impact of HIV/Aids on government finance and public services.
HIV/Aids is a serious challenge to economic development. Increasing mortality reduce living standard directly and have repercussions that affects all areas of the economy. Companies face productivity losses an increasing cost of medical. Economic growth declines as the population grows more slowly and as reduced national saving rising costs and declining economic prospects deter investment.
Employees and personal costs
The HIV/Aids epidemic affects all levels and functions of government as increasing number of government employees fall ill and die.
Because government employees enjoy some form of retirement, death-related and medical benefits the government personnel costs has increased.
Prevention care and treatment
The government activities in fighting the epidemic through the prevention of new infections, antiretroviral treatment, other forms of care. The HIV expenditure is financed through external grants and concessional lending which the same money could be used in project development of beneficiaries. Also, orphans, the households and communities affected need a lot of resources to be taken care of.
Health sector resources
The domestic health sector to cope with HIV/Aids epidemic and the challenge to improve treatment for HIV/Aids is dependable on available financial resources and health personnel by government which are costly.
Public health expenditure in the absence of general access to private health insurance provides implicit insurance and thus mitigates the economic risks associate with sickness. Also, it puts pressure on health facilities such as share of health beds occupied by patients with HIV/Aids related diseases.
Conclusions
HIV/Aids pose a huge challenge to governments facing severe epidemics. The most visible impact of HIV/Aids on government operations has been on health services and expenditure. The existing health services have insufficient capacity to cope with the increased demand and health facilities responded by reducing access to care for less urgent medical conditions.

Clinton Kipkoech Rono

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