Over 1.8 billion birr collected to raise revolving fund
The Pharmaceuticals Supply Agency collected over 1.8 billion birr from credit sales in line with its plan to raise the Revolving Drug Fund (RDF) in the previous budget year, announced Deputy Director General for Finance and Administration, Mehari Tekeste.
The Deputy Director General explained that over 1 billion 815 million birr was collected out of the 2 billion 350 million birr worth of pharmaceuticals supplied to health facilities on credit.
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Mehari stated that health facilities used to take unlimited amount of medical supplies and inputs on loan from the Agency, noting that new loans over old unpaid ones have been prohibited for some time now.
He analyzed that the new approach has allowed health facilities to ask for ample budget from their local councils and reimburse their debt.
The Agency did not have a strong budgetary system to raise the size of the Revolving Drug Fund, said Mehari, explaining that the previous and current budget years saw the preparation of research based budget and implementation of every task in line with the budget allocated to it.
To monitor the budget as well as identify and amend procedures and sections that raise expenses, noted the Deputy Director General, a management accounting team has been established.
He also spoke of major expense reduction activities that involve the proper use of the Agency’s existing assets.