THE government plans to increase the health budget by R2,39-billion to a total of R32,32-billion for the next year, Manuel announced in his Budget. This represents growth of 6,6 percent. More than 90% of national health spending is made up of transfers to the provinces; these transfers are expected to grow from R5,4-billion in 1999/2000 to R5,9-billion in 2002/03. Provisional grants to the provinces are targeted at hospital rehabilitation and providing essential services in under-serviced areas. Personnel spending in the national health department has increased from R125,4-million last year to R139-million this year, to fund what the Budget review says are “critical vacant posts” in the department.