Financing HIV/AIDS responses in Africa: Impact evidence from Uganda

Abstract

Although HIV/AIDS has been tamed medically into a chronic disease through advances in treatment drugs, the full economic costs of keeping people on treatment and implementing prevention measures are still not fully quantified and are still unfolding. This paper assesses the long-term economic impact of domestic and external sources of financing HIV responses using a dynamic computable general equilibrium model. Taking Uganda as a case study for analysis, our study shows that increasing government HIV funding facilitates higher GPD growth and lower government debt relative to the baseline. Earmarked taxes and foreign-aid are potential sources of fiscal space for HIV.