by Cheryl Cashin, Susan Sparkes, Danielle Bloom
Health Financing Working Paper No. 5
World Health Organization, 2017
Many countries are considering earmarking as a mechanism to increase fiscal space and mobilize resources for the health sector, to finance progress toward universal health coverage (UHC), or to fund other health priorities. Earmarking involves separating all or a portion of total revenue – or revenue from a tax or group of taxes – and setting it aside for a designated purpose. Earmarking has become part of the global discussion on domestic resource mobilization for health, particularly as countries transition from donor support and work to achieve health system goals as well as other targets. Earmarking is also increasingly used as an instrument of public health policy – to tax the consumption of unhealthy products such as alcohol and tobacco, for example.