Turning Alcohol Taxes into Maternal and Reproductive Health Gains
To help address these gaps, Guatemala enacted legislation in 2004 mandating that 15% of the revenue from taxes on alcoholic beverages be allocated to the Ministry of Public Health and Social Assistance (MSPAS) for reproductive health programs. This funding aims to reduce maternal and newborn deaths and expand access to reproductive health services, including through the procurement of contraceptive supplies. In 2010, the Law for Healthy Motherhood strengthened this policy by requiring that 30% of the earmarked funds be used specifically for the purchase of contraceptive supplies—and that none of the funds be diverted for unrelated purposes.
The alcohol tax revenue is distributed to departments and to hospitals based on national and departmental priorities, past implementation performance, and identified needs. The law also improved budget transparency by requiring MSPAS to include a dedicated reproductive health line item in the national budget and track how funds are spent. For 2025, the 15% share of the alcohol tax totals over Q125 million (approximately USD $16.3 million).
Utz’ Na’n Budget Monitoring and Social Accountability
- Better aligning departmental and hospital-level allocations with the National Reproductive Health Program’s strategic plan, aiming to reduce maternal and neonatal mortality and improve reproductive health, with measurable indicators tied to budgetary investment.
- Basing allocations on locally identified needs and diagnostics, as reflected in each department’s annual operational, procurement, and contracting plans.
- Exploring centralized purchases or alternative mechanisms to make better use of available resources for procuring the full range of contraceptive methods.
