Applied Fiscal Research Centre, UCT: Social Service Delivery
Parliamentary hearings on Budget 1999
Submission to The Portfolio Committee on Finance on The Health Budget and Social Service Delivery
R million |
1995/96 |
1998/99 |
Avg growth |
MTEF |
Avg growth |
||
Outcome |
Estimate |
||||||
e |
e |
||||||
95/96 - 98/99 |
1999/00 |
2000/01 |
2001/02 |
98/99 to 00/01 |
|||
National department |
1 290.9 |
5 535.1 |
62% |
5 939.7 |
6 243.4 |
6 378.8 |
4.1% |
Consolidated national and provincial health spending |
16 078.0 |
23 |
13% |
24 |
26 |
28 |
4.3% |
National spending as a percent of total |
8.0% |
23.8% |
24.7% |
23.7% |
22.5% |
Sources: Budget Review, table 5.8; National expenditure survey 1999 pg 126
As can be seen from the table below, that increase was due to conditional grants falling under the Policy and Planning subprogramme.
Table 2: National health department expenditure by programme
R million |
Expenditure outcomes Prelim MTEF |
||||||
1995/96 |
1996/97 |
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
|
Administration |
33.4 |
43.0 |
46.2 |
49.7 |
55.2 |
54.8 |
54.3 |
Policy and Planning |
264.9 |
352.4 |
231 |
4660.4 |
4966.2 |
5291.4 |
5378.9 |
Regulation, services and programmes |
139.4 |
244.7 |
220.8 |
800 |
900.7 |
876.3 |
912.5 |
Auxiliary and associated services |
14.9 |
15.9 |
14.5 |
14.8 |
15.7 |
16.7 |
16.9 |
RDP Projects |
839.3 |
||||||
Less Internal Charges |
1 |
||||||
Subtotal |
1290.9 |
656.0 |
512.5 |
5524.9 |
5937.8 |
6239.2 |
6362.6 |
Capital |
10.2 |
1.9 |
13.2 |
16.2 |
|||
Total |
1290.9 |
656.0 |
512.5 |
5535.1 |
5939.7 |
6252.4 |
6378.8 |
Programme as a percentage of total expenditure |
|||||||
Administration |
2.6% |
6.6% |
9.0% |
0.9% |
0.9% |
0.9% |
0.9% |
Policy and Planning |
20.5% |
53.7% |
45.1% |
84.2% |
83.6% |
84.6% |
84.3% |
Auxiliary and associated services |
1.2% |
2.4% |
2.8% |
0.3% |
0.3% |
0.3% |
0.3% |
RDP Projects |
65.0% |
||||||
Capital |
0.2% |
0.0% |
0.2% |
0.3% |
|||
100% |
100% |
100% |
100% |
100% |
100% |
100% |
Source: National expenditure survey 1999, table 17.1 and own calculations
Issues in health financing
1] Information
At present there is not information at sub-programme level on actual expenditure and budgets for the national departments and the nine provinces. This makes tracking actual expenditure on HIV/AIDS in the sector virtually impossible to track. In addition these may be located in different departments eg welfare. The Minister of Finance has expressed enthusiastic support for output budgeting. But this is still in its embryonic stage and needs to be refined (e.g. laboratory and virology services – how much? Two whom? What per unit cost?)
2] Conditional grants
There has been an increase in conditional health grants (see table 17.4 of the National Expenditure Review 1999). Yet questions about conditional grants remain:
• Input versus output grants and accountability for results
• Where should accountability for conditional grants be allocated?
3] Unfunded mandates
These have been mitigated by joint MinMecs and the 4x4s, but without proper costing of national policies, this is likely to persist.
4] Personnel budget
Increases in personnel costs at provincial level have been crowding out non-personnel and capital expenditures (like medicines, clinics etc). This is a cause for concern because it could compromise service delivery. Also problems with the skill profile of health service personnel.