{"id":753951,"date":"2024-02-21T15:48:25","date_gmt":"2024-02-21T13:48:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=753951"},"modified":"2024-02-21T15:48:30","modified_gmt":"2024-02-21T13:48:30","slug":"r1-4-billion-allocated-for-nhi-as-a-sign-of-commitment","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/budget-speech\/753951\/r1-4-billion-allocated-for-nhi-as-a-sign-of-commitment\/","title":{"rendered":"R1.4 billion allocated for NHI &#8211; as a sign of &#8216;commitment&#8217;"},"content":{"rendered":"\n<p>The health sector is expected to receive an allocation of R848 billion over the Medium Term Expenditure Framework with at least R1 billion directed to the National Health Insurance (NHI).<\/p>\n\n\n\n<p>This was announced by Minister Enoch Godongwana during the 2024 Budget Speech on Thursday.<\/p>\n\n\n\n<p>\u201cThese allocations include R11.6 billion to address the 2023 wage agreement, R27.3 billion for infrastructure, and R1.4 billion for the NHI grant over the same period.&nbsp;<\/p>\n\n\n\n<p>\u201cThe allocation for the NHI is a demonstration of the government\u2019s commitment to this policy. There remain a range of system-strengthening activities, that are key enablers of an improved public health care system, that must be undertaken,\u201d Godongwana said.<\/p>\n\n\n\n<p>He said these activities include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Building a national health information system and digital patient records;<\/li>\n\n\n\n<li>Upgrading health facilities and improving quality of care to ensure that they meet the minimum criteria to be certified and accredited for contracting under NHI;<\/li>\n\n\n\n<li>Strengthening facility and district management in preparation for contracting;<\/li>\n\n\n\n<li>Granting semi-autonomous status for central (and potentially other) hospitals; and<\/li>\n\n\n\n<li>Developing reference prices and provider payment methods for hospitals.<\/li>\n<\/ul>\n\n\n\n<p>In the 2024 Budget Review, National Treasury noted that the budget for the sector is expected to grow slower than inflation over the MTEF \u201cdue to the R23.7 billion baseline reductions over the medium term\u201d.<\/p>\n\n\n\n<p>\u201cThe function will prioritise greater efficiency, better management of commuted overtime and intensified promotion of preventative care. Spending reviews in the sector have led to some savings in vaccine and antiretroviral tenders. The health sector continues to recover from service disruptions due to the COVID\u201019 pandemic, particularly in antiretroviral treatment and tuberculosis screening and treatment.<\/p>\n\n\n\n<p>\u201cThe Department of Health and its provincial counterparts will prioritise building tertiary services like oncology through earmarked funds in the national tertiary services grant in provinces with inadequate services. This grant grows by 8.8% in 2024\/25 as funding is shifted into it from the oncology portion of the national health insurance conditional grant,\u201d Treasury said.<\/p>\n\n\n\n<p><strong>Education Sector<\/strong><\/p>\n\n\n\n<p>Turning to education, he said the sector will receive some R25.7 billion \u201ccarry-through costs of the wage increase over the medium term\u201d.<\/p>\n\n\n\n<p>\u201cAt the same time, we were able to protect the budgets of critical programmes such as the school nutrition programme. The programme provides food to pupils in almost 20 000 schools.&nbsp;<\/p>\n\n\n\n<p>\u201cThe early childhood development grant is allocated R1.6 billion rising to R2 billion over the medium term,\u201d he said.<\/p>\n\n\n\n<p><strong>Firm eye<\/strong><\/p>\n\n\n\n<p>Government is expected to keep a firm eye on value for money as consolidated government spending is expected to reach R2.37 trillion in 2024\/25, R2.47 trillion in 2025\/26 and R2.6 trillion in 2026\/27.<\/p>\n\n\n\n<p>This is according to the National Treasury\u2019s 2024 Budget Review.<\/p>\n\n\n\n<p>\u201cGovernment\u2019s priority is to enhance spending quality and minimise inefficiency while ensuring sustainable public finances \u2013 in other words, to increase the value for money from this spending,\u201d the department said.<\/p>\n\n\n\n<p>The bulk of the 2024\/25 budget will go to basic and tertiary education, peace and security.<\/p>\n\n\n\n<p>\u201cWhile R69.4 billion is added to this function for the carry\u2010through costs of the 2023 public\u2010service wage agreement over the medium term, there are baseline reductions of R49.8 billion in other areas. Improved efficiency in the procurement of learner\u2010teacher support materials and in the management of the placement of educators will continue.<\/p>\n\n\n\n<p>\u201cSpending in the post\u2010school education and training sector grows by 2.5% over the medium term. Spending in the sector education and training authorities and the National Skills Fund grows by 3.9% over the medium term, allowing the institutions to improve the quality of their offerings,\u201d Treasury said.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/budget-speech\/753861\/godongwana-grabs-r150-billion-from-south-africas-forex-reserves\/\">Godongwana grabs R150 billion from South Africa\u2019s forex reserves<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finance minister Enoch Godongwana has said that R1.4 billion of the health sector&#8217;s budget allocation will go towards the NHI.<\/p>\n","protected":false},"author":33,"featured_media":642499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13716],"tags":[19370,17448,12033],"class_list":["post-753951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget-speech","tag-budget-2024","tag-enoch-godongwana","tag-nhi"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=753951"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753951\/revisions"}],"predecessor-version":[{"id":753991,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/753951\/revisions\/753991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/642499"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=753951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=753951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=753951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}