Health funds ‘slashed in real terms’ over next three years

Health Minister Dr Joe Phaahla welcomed the decision by the National Treasury to “favourably consider that the current shrinking budget allocations have a negative impact on the effective functioning of the public health system in the country”.

He was responding to Finance Minister Enoch Godongwana’s Budget Speech, delivered on 21 February.

Godongwana allocated R848-billion for health over the Medium Term Expenditure Framework, including R11.6-billion to address the 2023 wage agreement; R27.3-billion for infrastructure; and R1.4-billion for the National Health Insurance Grant.

An additional R3.7-billion was allocated to the health sector for the compensation of employees for the 2024/25 financial year.

This funding is intended to address the wage bill increase and aid the recruitment of additional staff, including nurses and medical doctors, according to the Department of Health.

“Although the budget may not address all health service delivery challenges at once, it will go a long way to enable the department to respond to the immediate and key priority needs to strengthen the health system. These include activating vacant but unfunded essential posts,” the department said.

It would soon outline plans, with timelines, for the recruitment and appointment of health workers, including recently graduated health professionals and unemployed medical doctors.

The Treatment Action Campaign, an HIV/AIDS advocacy organisation, said in a statement on 22 February that, although it was “relieved” the budget had prioritised safeguarding allocations towards health workers, the health budget was still likely to shrink in real terms over the next three years, with a R23.7-billion baseline reduction.

“In the current multiple crises of unemployment, poverty, inequality and climate change, implementing harsh fiscal consolidation measures at the expense of investment in vital public services like health is self-defeating,” it said.

“Despite concerns about the state of the country’s health facilities, the Health Facility Infrastructure Grant has been cut by R3.6-billion over the next three years. It is important to note that investing in infrastructure is also an investment in job creation, something this country desperately needs,” noted the Treatment Action Campaign.

Business Day reported that, although there would be a 2.6% increase in the provincial equitable share budget, this fell below the inflation rate for the 2024 financial year.

The Western Cape’s equitable share budget increased by 2.4%, and the Gauteng and Northern Cape budgets rose by 2.8% and 3.6%, respectively.