Govt expects MVR 90m in savings from bulk medicine import
Saruvash said that 15%t of the imported drugs would be covered under the deal.
By
Ahmed Naif
The agreement signed with UNDP on Thursday to procure medicines and pharmaceuticals in bulk will result in savings of about MVR 90 million annually, finance ministry said Sunday.
One of the cost-cutting measures in this year's budget is the purchase of medicines and medical consumables in bulk. According to the budget:
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If the measure is not implemented, the government will have to spend 1.2 billion on medical supplies
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The budget allocation for this year for medicine imports is MVR 1 billion
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MVR 166.4 million is estimated to be saved via bulk import
An agreement was signed on Thursday to buy and import quality medicines to STO through UNDP's global health procurement service.
When asked about the deal, Ahmed Saruvash Adam, head of the finance ministry's department of fiscal affairs, said orders can now be placed to bring medicines to STO through UNDP. He added that 15%t of the imported drugs would be covered under the deal.
Saruvash said it would be beneficial for the country in the long run.
"We can save MVR 45-50 million this year. We can save around MVR 90 million annually. If the deal goes well, its scope can also be expanded in the future," he said.
Saruvash added:
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Medicines can be brought at 60-70% cheaper than the current price
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More drugs than existing ones can be added to the agreement
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Medicines are a major part of the health sector's needs
With bulk import of medicines, the budget has made three recommendations to reduce state expenditure this year:
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Saving MVR 1 billion from fuel subsidies
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Saving MVR 460.70 million from Aasandha national health insurance scheme expenses
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Saving MVR 150.21 million from power subsidies
However, as the government has recently revealed, it is now planning to put on hold the proposed subsidy reforms. Instead, the government is trying to ease the burden on the budget by taking measures such as procuring cheaper fuel.
