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Friday, June 25, 2010

Budget crises, health, and social welfare programmes



The recession of 2008 has had profound economic consequences for many countries. How and when to reduce budget deficits was a major focus in the recent general election in the United Kingdom and continues to make headlines around the world. The new government has already begun to make large cuts in public expenditure,1 2 even though the UK’s projected underlying debt, as a share of gross domestic product (GDP), is less than that of other industrialised countries, it has longer than many other countries before it is required to refinance loans (table 1Go), and the actual deficit in 2009-10 was considerably less than expected. Leading economists have widely divergent views about whether the cuts will aid or hinder economic recovery,3 4 but have paid scant attention to the potential effects of reductions in health and social expenditure on population health.5 We examine historical data for insights into how lower levels of public spending might affect health.

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