ABSTRACT
A plan sets out what will be provided in the future - what buildings, personnel and supplies. The uncertainties about the future were only one reason for the failure to make financial plans. The costing should include all capital projects which have been approved and their financial consequences for both capital and costs. In general a decision to make real cuts in a service’s expenditure will depend on a number of factors, the likely impact of the financial squeezer, the anticipated political reaction, the likely impact in health terms and the opportunities in the service for making real efficiency savings’. The process of financial planning obliges countries to confront painful alternatives. The plan envisaged the completion of the process of integrating the preventive and curative services in combined health centres, the development of a personal doctor system within primary care, and the rebuilding of some hospitals, which would require extra recurrent costs.
