Treasury’s health bailout sends the right signals to communities, showing that it’s a government that cares
The Rural Health Advocacy Project (RHAP) welcomes the R28 billion health bailout National Treasury has allocated to navigate debt and the provision of health services over the next year.
Ahead of the budget three weeks ago, RHAP called for a 33billion bailout to alleviate the current pressure on the health system and tackle debt in provinces.
The bailout it argued would cover the funding gap created by the withdrawals of US funding, the public sector wage bill and the cumulative annual budget shortfalls that has accrued in provinces as a result of chronic underfunding.
In his budget statement, Finance Minister Enoch Godongwana said health spending would grow from R277 billion in 2024/25 to R329 billion in 2027/28 to support the equitable provision of public health services, including free primary healthcare.
Delivering the speech today, Godongwana acknowledged the persistent spending pressures in health, education, transport and security.
“These have to do with the government properly fulfilling its service delivery mandate,” he said.
“R28.9 billion is added to the health budget, mainly to keep about 9 300 healthcare workers in our hospitals and clinics. It will also be used to employ 800 post-community service doctors, and to ensure that our pharmacies do not run out of medicines”.
Godongwana noted that the accruals in the sector had ballooned to nearly R22 billion.
“This means that the money allocated to departments ends up paying for previous services and goods rather than for the current needs, setting off a vicious cycle of budget shortfalls, unpaid invoices, and a crisis in cashflow and the planning and predictability of budgets,” added Godongwana.
“After careful consideration, the government has decided to fund these. Deferring the funding of these sectors further would compromise the government’s ability to meet its constitutional obligations to the people,” he said.
RHAP Executive Director Russell Rensburg said he was delighted that calls from the organisation did not fall on deaf ears.
“While the government has the delicate task of balancing the financial pressures that the country faces, the government a constitutional obligation of alleviate the plight of the millions of people who depend on their services, particularly for healthcare, education and social services.”
“Minister Godongwana sends out a positive message with his healthcare allocations, signalling to the masses that this government cares,” said Rensburg.
The allocations would lay a foundation for the broader plan to strengthen public funded health services going forward.
However, he warned that governance and oversight into these allocations would be necessary to ensure that the services reach those who need it most.
For more information or for interviews, please contact Palesa Chidi on tchidi@rhap.org.za or on 078 625 0511.