GOVERNMENT EXPENDITURE ON HEALTH

GOVERNMENT EXPENDITURE ON HEALTH

26.

Mr Siew Kum Hong asked the Minister for Health over the last five years (a) what has been the expenditure on health as a percentage of annual total Government expenditure; (b) what has been the per capita Government expenditure on health; and (c) if these figures have been declining, what is the reason for such a decline.

Mr Khaw Boon Wan: Over the last five years, our Government health expenditure for Singaporeans has increased from $1.53 billion in FY2002, to $1.93 billion in FY2006. This was an average growth rate of 6% per annum.

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On a per-capita basis, the Government's expenditure has increased from $453 to $535 over the same period.

As a percentage of total Government expenditure, it has gone up from 6.7% to 7.5% over the same period.

This was not a straight-line growth because there was a sharp spike in health expenditure in FY2003, to counter the immediate challenges from the Severe Acute Respiratory Syndrome (SARS). There was also some post-SARS expenditure in subsequent years to prepare for possible re-emergence of SARS and similar threats.

The trend in Government health expenditure is clearly upwards as our population continues to age and patients' expectation continues to rise. Going forward, the Government will spend a lot more on healthcare, but patients' co-payment will inevitably go up in quantum even as we maintain the same subsidy rate. We therefore have a collective interest to look for more effective ways to deliver services without compromising standards, make health insurance work more efficiently, and manage rising expectations.