Healthcare reforms in Uganda have been largely evaluated using partial equilibrium analysis
which is ill-equipped to estimate the cascade effects resulting from certain public healthcare
interventions. This paper sets out to determine the economy wide impacts of healthcare
reform policies with simultaneous health effects; using a recursive dynamic computable
general equilibrium (CGE) model for Uganda, based on a health-focused Social Accounting
Matrix (SAM). An increase in the health sector budget share coupled with the envisaged
improvements in the population health status leads to higher GDP growth rates; more
employment and reduces the number of people living below the poverty line. The policy
implication is that the government of Uganda should increase the health sector share in the
national budget so that more funds are invested in health improvement activities for its
population.