[2908] Defund non-critical ministries to fund the Ministry of Health more

The public health system is in need of more resources to manage the Covid-19 pandemic. We all talk about flattening the curve but government’s incompetence that caused the Tuesday fiasco means the peak will likely get higher and higher and the time needed to fight this will go longer and longer.

This is the time to direct more resources towards the public health system. Specifically, the budget for the Ministry of Health needs to be enlarged significantly so that they can build whatever capacity they can and need in this short period of time ahead of the peak.

Raising the overall budget might be difficult, with the current balance likely collapsing and legal requirements in the way. These legal requirements maybe artificial, but it is a barrier that not many at the Treasury I would imagine willing to break (in any case, raising the fiscal deficit is inevitable and even preferable). The chart below shows the little fiscal space the government has with respect to current balance.

So, I am suggesting the second best solution is to defund non-critical ministries, and redirect those money towards the Ministry of Health, and other relevant ministries crucial in making health measures effective fast. I do not know which non-critical ministries should be defunded, but there are indeed many programs across various ministries, even overlapping programs, that exist out of political considerations, but little social and economic functions.

The reallocation may require parliamentary approval. So we may need emergency parliamentary sitting ahead of the May 2020 schedule.

I know the government fears a vote of no confidence, but in time of crisis I think both sides should come together as one, and pass such reallocation quickly. We can delay our political differences to after the crisis is over.

By Hafiz Noor Shams

For more about me, please read this.

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