The health sector is expected to receive an allocation of R848 billion over the Medium-Term Expenditure Framework with at least R1.4 billion directed to the National Health Insurance (NHI).
This was announced by Minister Enoch Godongwana during the 2024 Budget Speech on Wednesday.
“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.
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Godongwana said the allocation for the NHI is a demonstration of the government’s commitment to this policy, adding that “there remain a range of system-strengthening activities, that are key enablers of an improved public health care system, that must be undertaken.”
In the 2024 Budget Review, National Treasury noted that the budget for the sector is expected to grow slower than inflation over the MTEF “due to the R23.7 billion baseline reductions over the medium term”.
“The function will prioritise greater efficiency, better management of commuted overtime and intensified promotion of preventative care. Spending reviews in the sector have led to some savings in vaccine and antiretroviral tenders. The health sector continues to recover from service disruptions due to the COVID‐19 pandemic, particularly in antiretroviral treatment and tuberculosis screening and treatment.
“The Department of Health and its provincial counterparts will prioritise building tertiary services like oncology through earmarked funds in the national tertiary services grant in provinces with inadequate services. This grant grows by 8.8% in 2024/25 as funding is shifted into it from the oncology portion of the national health insurance conditional grant,” Treasury said.
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