Statistics conducted by NAC between 2009 and 2010 indicate that income from the AIDS Levy in 2009 stood at US $5.1 million against a budget of US$5 million, while $3,3 million was raised in the first quarter of 2010.
Due to the income boost, NAC has projected a US$15 million by year end against a budget of $195 million.
The projection comes at a time when foreign currency inflows are still low considering the meagre salaries, high unemployment rate and low industrial production. This is exacerbated by the fact that the AIDS levy fiscus is solely generated from the formal sector surviving on a US$175 threshold way below the poverty datum line.
Communications Officer Orlando Manwere pinpointed inflation and limited donor support as cause factors towards the AIDS levy decline.
Funding for the health delivery system has been dwindling in real terms since 2000 due to inflation and limited donor support. This has greatly affected funding for HIV and AIDS interventions, he said.
Apart from inflation, the AIDS levy drastically dwindled when the donor community, the biggest financier, distanced itself following the unstable socio-political environment that prevailed before the formation of the inclusive government.
The donor community was sceptical about disbursing funds to the Reserve Bank, where most funds were being diverted into the then Zanu (PF) government coffers to fund terror campaigns and looting of state resources.
Post published in: News