11. Fiscal Policies for Health Promotion and Disease Prevention

Table 11.4: Lessons in Using Fiscal Policy for Health Promotion

Lessons in Using Fiscal Policy for Health Promotion
Intervention choiceProgram designInstrument designPolicy regime
  • Select interventions that directly address the health objective.

  • Ensure that interventions are sufficient to effect the health change, but not excessive.

  • Choose interventions with high health returns and low costs relative to alternatives.

  • Ensure that the health benefits of the desired change are apparent and significant.

  • Make sure that the tax base is adequate and stable and that no untaxed close substitutes are available.

  • Be aware that a large informal labor sector will limit the effectiveness and equity of benefit delivery.

  • Avoid programs whose expenses may become unsustainable because of uncontrollable factors.

  • Choose the appropriate recipients for a subsidy or tax preference.

  • Do not spread the benefits across too large a group.

  • Note that targeting by demographic, geographic, or need categories is more efficient than no targeting or self-targeting.

  • Be aware of the price elasticities of a taxed good so that its incidence is clear.

  • Ensure that policy is consistent and predictable.

  • Ensure that institutions carrying out a policy are open, accountable, and uncorrupted.

  • Consider tradeoffs between efficiency and distributional goals.

  • Seek non-health sector opportunities to effect health goals.

Source: Authors.