Government Allocates Billions to Strengthen Education and Healthcare Sectors

Higher education is also set to benefit, particularly students from middle-income families earning between R350,000 and R600,000 annually.

The government has committed significant financial resources to enhance South Africa's education and healthcare systems, ensuring sustainable improvements in service delivery over the medium term.

To address high learner-teacher ratios and retain skilled educators, an additional R19.1 billion has been allocated over the medium term, securing the employment of approximately 11,000 teachers in classrooms across the country. Minister of Finance Enoch Godongwana, during his Budget Speech in Parliament, emphasized the importance of maintaining sufficient teaching staff while ensuring that other crucial areas of education funding are not compromised.

Currently, salaries consume 76% of provincial education budgets, leaving only R24 of every R100 to fund essential services such as school infrastructure, learner meals, textbooks, and stationery. The newly allocated funds aim to prevent these critical aspects of education from being overshadowed by compensation expenses.

Furthermore, early childhood development (ECD) has been identified as a cornerstone of national progress. Since the ECD subsidy has remained at R17 per day per child since 2019, the government has allocated an additional R10 billion over the medium term, increasing the subsidy to R24 per day. This boost will facilitate access to ECD programs for approximately 700,000 more children up to the age of four.

Higher education is also set to benefit, particularly students from middle-income families earning between R350,000 and R600,000 annually. The Department of Higher Education is implementing a pilot funding model managed by the National Student Financial Aid Scheme (NSFAS), supported by R1.5 billion in 2024/25 and R3 billion over the Medium-Term Expenditure Framework (MTEF) period. Additionally, the government will review apprenticeship and skills development levy systems to increase the number of artisans completing trade tests over the next three years through enhanced work-based learning opportunities.

The arts, culture, sport, and recreation sector will receive R38.4 billion over the medium term. This funding will support school sports, national recreation events, various sporting codes, and the preservation of South Africa’s diverse cultural and linguistic heritage.

Healthcare Sector Enhancements

Public health spending is set to increase from R277 billion in 2024/25 to R329 billion in 2027/28 to ensure equitable access to healthcare services, including free primary healthcare. A major portion of provincial health budgets is dedicated to salaries and wages. To sustain essential healthcare staffing, R28.9 billion will be injected into the health sector, allowing the retention of 9,300 healthcare workers in hospitals and clinics, the employment of 800 post-community service doctors, and measures to prevent medicine shortages in public pharmacies.

The government is also taking significant steps to prepare for the implementation of the National Health Insurance (NHI) policy. The Department of Health will develop an integrated patient information system, a centralised chronic medicine dispensing and distribution system, and a facility medicine stock surveillance system. Over the MTEF period, indirect and direct conditional grants for NHI will receive R8.5 billion and R1.4 billion, respectively.

Infrastructural improvements are a priority, with R37.4 billion allocated over the MTEF period for new or replacement buildings, facility upgrades, and maintenance. Funding from the Budget Facility for Infrastructure (BFI) will support key projects, including new allocations for Siloam District Hospital and Tygerberg Hospital equipment through a public-private partnership in 2027/28.

Through these financial commitments, the government aims to strengthen the nation’s education and healthcare systems, fostering long-term social and economic development.