Education remains the largest category of expenditure in this year’s South African Budget, at 23.2% of non-interest spending in 2003/04.
However, health, welfare and housing will continue to grow more strong, reflecting the broadening of social service priorities, according to the Budget review.
Social services — into which education falls — takes up R173-billion of the consolidated national and provincial government budget of R351,3-billion. Education will receive R69-billion in the coming year — 2003/04 — up from R62-billion in 2002/03.
Health rises from R34,9-billion in 2002/03 to R39-billion while welfare rises from R41,9-billion to R48,6-billion. The sharpest growth goes to welfare with social security services increasing to R63-billion by 2005/06. This represents a 14,5% growth between 2002/03 and 2005/06.
The education budget is set to rise to R79-billion in 2005-06 — representing an 8% growth in the period 2002/2003 to 2005/06. The health budget will rise to 45,6-billion by 2005/06 — representing a 9,3% growth in this period. Notably, on an annual average basis CPIX last year was 10% while in the 12 months to January 2003 CPIX was 11,8% and the government has forecast would average 7,7% this year.
The last components of the social services cluster — housing and community development — rise from R5,5-billion to R6,5-billion and R8,1-billion to R10,1-billion respectively from the last budget to today’s budget.
Notably water schemes — as part of the economic services cluster get a big boost, reflecting Finance Minister Trevor Manuel’s Budget speech emphasis on the area. He said: “We now that access to basic services — water, electricity and sanitation — advances local development.”
“The Budget sets aside more than R23,7-billion over the next three years to assist municipalities to extend basic service delivery to poor households.”
The water schemes and related services budget rises from R4,5-billion in 2002/03 to six billion rand this year.
Transport and communication function are the largest of the economic services cluster which Manu said reflected both rising investment in roads and further increases in commuter subsidies. The budget rises from R13,8 -billion to R15,5-rand.
It is scheduled to rise to 19 billion rand in 2005/06. Consolidated expenditure (of national and provinces) will rise 10.2% between 2002/03 and 2005/06 to R415-billion. – I-Net Bridge