• Total budget for 2014/15 is R33,9 billion growing at an average of 9,3% to R39,4 billion over the MTEF;• Of this R30,1 billion or 88,7% are Conditional Grants to Provinces;• The National Department has retained R1,5 billion as an In-Direct Grant to spend on behalf of Provinces i.e. Infrastructure, NHI and HPV Vaccines;• Compensation grows by an average of 7,7% over the MTEF and Goods and Services by 14,8% mainly due to the addition of the HPV Vaccine grant.

BUDGET OVERVIEW

Conditional Grants

Schedules 

Conditional Grants 

Budget Allocation - 

2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17

R'000 R'000 R'000Schedule 4A Health Professions Training & Development Grant 2,321,788 2,428,590 2,557,305 National Tertiary Services Grant 10,168,235 10,635,974 11,199,680 Schedule 5A Comprehensive HIV/AIDS Grant 12,311,322 13,957,043 15,696,765 Health Facility Revitalisation Grant 5,239,981 5,388,790 5,652,280 National Health Insurance Grant 70,000 73,967 77,887 Schedule 6A National Health Grant             1,575,000             1,635,000             1,516,000  National Health Insurance Component 395,000 414,000 401,000 Health Facility Revitalisation Component 980,000 1,021,000 1,115,000 Human Pappilomavirus Component 200,000 200,000 - Conditional Grants transferred to provinces S4 & 5 30,111,326 32,484,364 35,183,917 Conditional Grants kept at National Health 1,575,000 1,635,000 1,516,000 Total Sector Conditional Grants           31,686,326           34,119,364           36,699,917 

Conditional Grants Growth

Schedules Conditional Grants

 Original Budget 

2013/14 

Budget Allocation - 

2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17R'000 R'000 R'000 R'000

Schedule 4A Health Professions Training & Development Grant 2,190,366 2,321,788 2,428,590 2,557,305 6.0% 4.6% 5.3%National Tertiary Services Grant 9,620,357 10,168,235 10,635,974 11,199,680 5.7% 4.6% 5.3%

Schedule 5A Comprehensive HIV/AIDS Grant 10,533,886 12,311,322 13,957,043 15,696,765 16.9% 13.4% 12.5%Health Facility Revitalisation Grant 5,123,542 5,239,981 5,388,790 5,652,280 2.3% 2.8% 4.9%National Health Insurance Grant 48,500 70,000 73,967 77,887 44.3% 5.7% 5.3%

Schedule 6A National Health Grant 1,104,025 1,575,000 1,635,000 1,516,000 42.7% 3.8% -7.3%      28,620,676        31,686,326         34,119,364        36,699,917  10.7% 7.7% 7.6%Total Sector Conditional Grants

% Growth rates

2013/14-2014/15

2014/15-2015/16

2015/16-2016/17

Health Professions Training Grant

Health Professions Training & Development Grant

Budget Allocation - 2014/15

Budget Allocation - 2015/16

Budget Allocation - 2016/17

R'000 R'000 R'000

Eastern Cape 199,874 209,068 220,149

Free State 146,419 153,154 161,271

Gauteng 811,114 848,425 893,391

KwaZulu Natal 292,837 306,308 322,542

Limpopo 116,206 121,552 127,994

Mpumalanga 95,288 99,671 104,954

Northern Cape 76,697 80,225 84,477

North West 104,586 109,397 115,195

Western Cape 478,767 500,790 527,332 Total             2,321,788             2,428,590             2,557,305 

National Tertiary Services Grant

National Tertiary Services Grant

Budget Allocation - 

2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17

R'000 R'000 R'000Eastern Cape 786,007 822,163 865,738

Free State 898,091 939,403 989,191

Gauteng 3,493,891 3,654,610 3,848,304

KwaZulu Natal 1,496,427 1,565,263 1,648,222

Limpopo 323,158 338,024 355,939

Mpumalanga 97,116 101,584 106,968

Northern Cape 298,727 312,468 329,029

North West 237,264 248,178 261,331

Western Cape 2,537,554 2,654,281 2,794,958

Total           10,168,235           10,635,974           11,199,680 

Comprehensive HIV/AIDS Grant

Comprehensive HIV/AIDS Grant

Budget Allocation - 2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17

R'000 R'000 R'000

Eastern Cape 1,449,237 1,602,290 1,802,013

Free State 843,026 926,533 1,042,024

Gauteng 2,632,578 2,975,139 3,345,986

KwaZulu Natal 3,257,992 3,874,085 4,356,983

Limpopo 978,132 1,073,882 1,207,740

Mpumalanga 818,836 942,045 1,059,469

Northern Cape 342,789 377,191 424,207

North West 936,938 1,029,187 1,157,473

Western Cape 1,051,794 1,156,691 1,300,870

Total           12,311,322           13,957,043           15,696,765 

Health Facility Revitalisation Grant

Health Facility Revitalisation Grant

Budget Allocation - 

2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17

R'000 R'000 R'000

Eastern Cape 599,231 442,930 -

Free State 448,962 554,950 -

Gauteng 671,033 303,630 -

KwaZulu Natal 1,162,469 1,090,431 -

Limpopo 467,442 184,255 -

Mpumalanga 343,509 277,942 -

Northern Cape 421,428 446,407 -

North West 486,121 558,721 -

Western Cape 639,786 645,200 -

Unallocated - 884,324 5,652,280

Total             5,239,981             5,388,790             5,652,280 

National Health Insurance Grant

National Health Insurance Grant

Budget Allocation - 2014/15

Budget Allocation - 

2015/16

Budget Allocation - 

2016/17

R'000 R'000 R'000

Eastern Cape 7,000 7,397 7,789

Free State 7,000 7,397 7,789

Gauteng 7,000 7,397 7,789

KwaZulu Natal 14,000 14,793 15,577

Limpopo 7,000 7,397 7,789

Mpumalanga 7,000 7,397 7,789

Northern Cape 7,000 7,397 7,789

North West 7,000 7,396 7,788

Western Cape 7,000 7,396 7,788

Total                   70,000                   73,967                   77,887 

• Challenge in Health sector is that some Provinces do not or are unable to pay for basic services e.g. Vaccines, Laboratory Tests, Blood etc.;

• Root cause is that allocations on these items are not adequately budgeted (e.g. only enough budget for 10 months) and overspending and non-payment of suppliers occurs annually;

• Further cause is poor cash flow management and prioritisation also contributes to the non-payment of suppliers;

• In Health Sector the budget for Personnel has grown annually at the expense of Goods and Services due to many appointments;

• Common knowledge that funds earmarked for specific programmes are not allocated as intended by either Provincial Health Departments or Provincial Treasuries;

• Key components have been identified as Non-negotiables.

NON NEGOTIABLE: BACKGROUND

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Infection Control and CleaningMedical Supplies including Dry Dispensary

MedicinesLaboratory Services

Blood ServicesFood Services

Security ServicesLaundry Services

Essential Equipment and Maintenance of EquipmentInfrastructure Maintenance

Children's VaccinesHIV and Aids

TB

NON NEGOTIABLE: COMPONENTS

CONCLUSION

National DoH Annual Performance Plan 2014/15 to 2016/17 is aligned to the National DoH Strategic Plan 2014-2019, which is founded on government’s 2030 vision outlined in the National Development Plan 2030.

National DoH Annual Performance Plan 2014/15 to 2016/17 reflects interventions to improve the health system and health outcomes for all South Africans.

The Department will continue to work towards improving healthcare equity, quality and access through the introduction of the National Health Insurance, and other Health Sector reforms through various initiatives.

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