Main budget non‐interest spending increases by a net R282.3 billion over the medium‐term expenditure framework (MTEF) period compared to the 2021 Budget. This increase is supported by higher‐than‐anticipated revenue collections and does not jeopardise the path to deficit reduction. Total consolidated government spending will amount to R6.62 trillion over the next three years. Additional allocations of R110.8 billion in 2022/23, R60 billion in 2023/24 and R56.6 billion in 2024/25 are made for several priorities that could not be funded through reprioritisation. These include the special COVID‐19 social relief of distress grant, the continuation of bursaries for students benefiting from the National Student Financial Aid Scheme, and the presidential employment initiative. Debt‐service costs will average R333.4 billion per year.
The learning and culture function receives the largest share (24.3 per cent) of the total consolidated budget over the next three years. The bulk of this allocation is for basic education. General public services, which mainly supports administrative and policy departments in the centre of government, will receive the smallest share (3.8 per cent) of the total. Spending across functions supports the implementation of new and existing policy priorities. Reprioritisation and reallocation of funds within departments and functions, as well as across functions, remain the key instruments for financing these priorities.
© 2020 Nexia SAB&T. ALL Rights Reserved. Nexia SAB&T is a member of Nexia International, a leading, global network of independent accounting and consulting firms that are members of Nexia International Limited. Nexia International Limited, a company registered in the Isle of Man, does not provide services to clients. Please see the “Member firm disclaimer” for further details.