Published: 21 May  2025, 19:54 am

Last night, Finance Minister Enoch Godongwana unveiled the latest iteration of South Africa’s national Budget—the third after several revisions—bringing some clarity to the country’s health sector funding.

The Treasury announced it would reduce the provisional additional allocations to the Health Department by R8.2 billion, lowering the amount from R28.9 billion announced in March to about R20.8 billion. Despite this significant cut, the department’s plans to hire 800 unemployed doctors and healthcare professionals remain unaffected.

To address urgent funding needs, including the shortfall caused by cuts to the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), the Treasury is considering invoking Section 16 of the Public Finance Management Act. This provision allows emergency allocations outside the standard Budget process and was last used during the COVID-19 pandemic.

 

Meanwhile, the South African Medical Research Council (MRC) has increased its emergency funding appeal from R150 million to R400 million to compensate for losses suffered due to the cancellation of U.S. grants. Though two major international donors have pledged support, they require government co-funding to proceed.

?Despite budget constraints, health spending is projected to rise steadily, with consolidated expenditure increasing from an estimated R277.2 billion in the 2024/25 fiscal year to R325.8 billion by 2026/27. This growth rate of 5.5% exceeds the Treasury’s inflation projection of 4.4%, signalling a commitment to expanding healthcare resources amid financial challenges.

Treasury officials say decisions on the emergency funding requests will be finalized soon. They are weighing the best approach to meeting the sector’s urgent needs without compromising fiscal stability.