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Pretoria - Social spending remains a top priority for government over the medium term, with growth averaging 7% over the next three years.
According to the mini budget released on Wednesday, Treasury had to reprioritise its spend, given the weak economic growth and rising pressures on the fiscus, but government remained committed to protecting spend on "core" social programmes.
"Despite fiscal pressures, government will continue to protect spending on core social programmes that benefit poor South Africans," Finance Minister Malusi Gigaba said in his address on Wednesday.
He explained that the majority of South Africans relied on the services provided by government to live a decent life.
"These services are largely sustained by the greater part of consolidated government expenditure which goes to social services, on education and training, healthcare, water, housing, public transport and social protection," he said.
Spend on social development for the 2017/18 fiscal year was projected to be R234.2bn. Medium-term estimates for 2018/19 is R251.2bn, for 2019/20 spend is projected to be R269bn and in 2020/21 R286.9bn.
According to Treasury’s baseline scenario, the number of grant recipients would grow from 17.3 million to 23.5 million by 2030/31.
Grant values were expected to grow in line with inflation. Social grants were to rise from 3.3% of GDP to a peak of 3.5% of GDP in 2030, before declining slowly thereafter, the policy statement read.
"Even in the low-growth scenario, grant expenditure is projected to peak at 3.8% of GDP."
Social protection, along with education and skills was also one of the Mandate Paper priorities for the 2018 Budget. This involves the implementation of National Health Insurance (NHI), HIV/Aids and tuberculosis plan.
Funding will also be directed towards expanding early childhood development, establishing different pathways to work, free education for the poor and expanding student accommodation.
Revenue division
The proposed revenue division prioritises the funding for poor communities and allocations to provinces focus on education, health and other social services, according to the policy statement.
Over the next three years, 43.2% of non-interest spending would be allocated for health, education and social services. Municipalities would beallocated 9.2% to support the cost of delivering basic services to the poor, Gigaba explained.
Spend on social services - which include health, basic education and social development services - account for nearly 80% of provincial spending. Provincial resources are to grow by an average of 7.2% over the medium term, above inflation.
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