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Health Sector Will Receive More Funding

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The health sector will receive more funding towards Covid-19 interventions. Finance Minister, Tito Mboweni announced this during the 2021 Budget Speech.

An additional R8 billion will be allocated to provincial health departments along with the R20 billion the sector will receive. 

These funds will help the health sector carry out the vaccination programme and manage hospital capacity.

“Provincial governments receive an additional R8 billion in 2021/22 to continue the public health response to the pandemic, and the potential for additional waves of infection. Provinces can mitigate the negative impact of COVID-19 and the associated lockdowns on their revenues by improving efficiency, particularly in the procurement of health equipment,” said the Minister.

Health expenditure during the medium term will make up a total of 14.2% of total government spending. 

This will be a decline from R247 billion in 2020/21 to R245 billion in 2023/24.

“Provincial health departments receive about 92 percent (R678.7 billion) of these medium-term allocations.

"Reductions to the sector, mostly focused on compensation spending, are estimated at about R50.3 billion over the 2021 MTEF period,” said the Treasury in the Budget document. 

In order to achieve this, health departments would have to make reductions in other ways. 

This will include the centralised procurement of goods as well as better management of overtime costs.

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