Budget Speech 2024Spending Plans |
Madam Speaker, at the time of the 2023 MTBPS when revenue collection had performed much worse than anticipated, departments had to reprioritise spending and absorb the wage increase within their baselines.
These measures were taken to protect our fiscal integrity. Equally, critical programmes had to be protected. This is a practical expression of fiscal consolidation that supports delivery of core services and the social wage.
Since then, we have been able to reverse some of the fiscal consolidation announced at the time of the MTBPS.
In this Budget, I am able to announce that the education sector is allocated an additional R25.7 billion for the carry-through costs of the wage increase over the medium term.
At the same time, we were able to protect the budgets of critical programmes such as the school nutrition programme. The programme provides food to pupils in almost 20,000 schools.
The early childhood development grant is allocated R1.6 billion rising to R2 billion over the medium term.
Health is allocated a total of R848 billion over the MTEF. These allocations include R11.6 billion to address the 2023 wage agreement, R27.3 billion for infrastructure, and R1.4 billion for the NHI grant over the same period.
The allocation for the NHI is a demonstration of the government's commitment to this policy. There remain a range of system-strengthening activities, that are key enablers of an improved public health care system, that must be undertaken.
Such activities include:
| • | Building a national health information system and digital patient records; |
| • | Upgrading health facilities and improving quality of care to ensure that they meet the minimum criteria to be certified and accredited for contracting under NHI; |
| • | Strengthening facility and district management in preparation for contracting; |
| • | Granting semi-autonomous status for central (and potentially other) hospitals; and |
| • | Developing reference prices and provider payment methods for hospitals. |
Many of these activities are already underway but require further development before the NHI can be rolled out at scale. Madam Speaker, there has also been significant progress in improving access to public transport services for low-income commuters.
The rail recovery programme of the Passenger Rail Agency of South Africa is continuing, with 27 corridors reopened by December 2023. This will increase the number of passengers on Metrorail from 15.6 million in 2022/23 to an estimated 48.6 million by 2026/27.
To ensure the effective discharge of its duties during elections, and its other responsibilities beyond the polls, the Independent Electoral Commission is allocated an additional R2.3 billion. The police and defence are also allocated an additional R350 million to support elections. A further R200 million will be allocated for political party funding as political parties prepare for the general elections.
Government also supports resettled farmers through land redistribution and tenure reform programmes, which have been allocated R6 billion over the MTEF.
To keep pace with inflation and increase access, permanent social grants are increased.
| • | An increase of R100 to the old age, war veterans, disability and care dependency grants. This amount will be divided into R90 effective from April, and R10 effective October; |
| • | A R50 increase to the foster care grant; and |
| • | A R20 increase to the child support grant. |
We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet.
In this regard, we have done as much as the fiscal envelope allows.
Work is currently underway to improve the COVID-19 Social Relief of Distress Grant by April this year. National Treasury will work with the Department of Social Development in ensuring that improvements in this grant are captured in the final regulations.
These improvements will be within the current fiscal framework. For the extension of the grant beyond March 2025, the social security policy reforms, together with the funding source, will be finalised.
We have also made provision for key initiatives aimed at job creation.
R61.4 billion is allocated for employment programmes over the medium term. R7.4 billion has been identified for the Presidential Employment Initiative.
Government is also prioritising fighting crime and corruption with a focus on enhancing law enforcement agencies. A total of R765 billion is allocated to the peace and security cluster.
In the coming financial year, 10,000 new police recruits will be trained.
As part of the country's responsibility to promote regional peace and stability, this budget will also allocate funding for the deployment of soldiers in Mozambique and the DRC.
Work on costing and identifying the needs for these critical missions will continue throughout the year and funding will be allocated as such.
R628 million has been allocated to the Department of Justice and Constitutional Development for the implementation of FATF and State Capture Commission recommendations bringing the total funding to these efforts to R2.3 billion
Government is using R2.9 billion from the Criminal Asset Recovery Account to combat illegal mining and other priority crimes, with 60 per cent allocated for police deployments, including vehicle procurement.
This budget is also prioritising infrastructure provision. Government plans to invest more than R943 billion in public infrastructure.
The spending will support the refurbishment and maintenance of existing assets and the building of new infrastructure.