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Children and South Africa’s Budget
Children and South Africa’s Budget
1. Macro context
2. Health
3. Education
4. Social Development
1. MACRO CONTEXT
South Africa
Key message 1
The nearly 20 million children in South Africa account for more
than a third of the country’s population of approximately 55
million.
Population growth is about 1.6% per year.
With GDP per capita of R73,061 in 2015, South Africa is an upper
middle income country.
GDP is growing at less than 1% per year – lower than both
inflation (6%) and population.
Key Message 2
South Africa does not have a single official poverty line.
However, all measures indicate that children are more
likely than adults to live in poor households.
Food inflation is higher than overall inflation.
Poverty lines (2011 Rand)
20.8
36.2
53.2
45.5
55.7
21.0
38.7
62.8
0
10
20
30
40
50
60
70
Food poverty Lower bound Upper bound Upper bound population Upper bound children
Rebased 2015 estimates 2014 estimates
%
Statistics South Africa University Cape Town
Key Message 3
The main source of government revenue is taxation.
In 2015/16, taxation stood at 27% of GDP.
If government had fully adjusted tax brackets for inflation
every year since 1990, the tax: GDP ratio would now be
about 29% because more people would be paying tax,
and the income of the wealthiest has increased faster
than inflation.
Key Message 4
Provincial budgets are especially important for children because
provinces bear the main responsibility for delivery of education
(other than tertiary), health and social development services.
In 2016/17 provinces receive 42.9% of all nationally collected
revenue.
Provinces receive a block grant (the equitable share)
determined by a formula, and conditional grants for specified
purposes.
National transfers to provinces
58060
22995
79600
87898
48709
33450
10863
28062
41062
10243
6816
18839
17489
7120
6987
3749
7043
10749
0
20000
40000
60000
80000
100000
120000
EC FS GT KZN LIM MPU NC NW WC
R m
illio
n
Equitable share Conditionalgrants
Key Message 5
The three social sectors – education, health & social protection
– each receive a substantial share of the consolidated (national
and provincial) budget.
However, debt service costs require almost as much funding as
social development, with each at about 10% of the combined
national and provincial budgets.
It will cost government R148 billion to pay interest on its debt in
2016/17.
Composition of consolidated budget, 2016/17
Function R bn % of total
Basic education 228.8 16%
Health 168.4 12%
Social development 167.5 11%
Defence, public order & safety 181.5 12%
Other 563.4 39%
Allocated expenditure 1309.6 89%
Debt service costs 147.7 10%
Contingency 6.0 0%
Consolidated expenditure 1463.3 100%
2. HEALTH
Key Message 1
The primary health care share of combined provincial budgets
has increased steadily over time, and inequities in allocations
between provinces are smaller than ten years ago.
However, in 2016/17 primary health care still accounts for less
than a third (29%) of total provincial health budgets.
Provincial primary health care budgets
29%
27%26%
31% 30%
33%32%
40%
25%
29%
0
200
400
600
800
1000
1200
1400
1600
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
EC FS GT KZN LIM MPU NC NW WC RSA
2016/17 PHC per uninsured
Key Message 2
The health component of the formula for the equitable share
may not adequately reflect the needs of the poorest children.
The weights used in the formula are based on use of health
care by children from wealthier households with medical aid
cover.
The health needs of children from poor households who are
the target of public health are likely to differ from those of
children in wealthier households.
Key Message 3
In 2014, 78% of children were likely to be treated at public
health facilities when ill.
The percentage was 96% for the poorest children but only
14% for children in the wealthiest households.
A quarter of children who use public health facilities have
travel time of half an hour or more to reach the facility, rising to
40% in rural areas.
Distance of children from health facilities
75%
89%
22%
9%
3%1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Public Private
< 30 min 30-89 min 90+ min
Key Message 4
For the nine provinces combined, the HIV and AIDS sub-
programme allocation increased from R9 277 million in
2012/13 to R15 684 in 2016/17.
Children, alongside adults, have benefited enormously from
the roll-out of antiretrovirals and prevention of mother-to-child
transmission
However, in 2016 more than half of HIV-infected children
under 15 years of age are still not receiving treatment.
HIV prevalence & ART coverage
0.0% 0.2% 0.3% 0.5% 0.9%2.4%
4.6%
8.2%
12.8%
18.8%
25.4%
33.0%
38.9%
43.5%
46.2%
1.5%
1.8%
2.1%
2.3%
2.5%
2.7%
2.8%2.9% 3.0% 3.0%
2.9%2.8%
2.7%2.6%
2.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ART coverage HIV prevalence
Key Message 5
If all children under five years of age without medical aid
made four visits to clinics and all pregnant women made four
antenatal visits, the costs would account for 39% of the total
primary health care budget excluding funds for HIV and AIDS.
In reality, young children make more than four visits on
average to public health services.
4 visits per annum as % of PHC-HIV
43%41%
31%
41%39%
37%
29%32%
29%
36%
3%4%
4%
3%
4%3%
2%
3%
3%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
EC FS GT KZN LIM MPU NC NW WC RSA
Child health Antenatal
Mean visits per year to clinics, 2015
3.12.8
2.3
3.3
2.82.6
3.1
2.6
3.02.8
4.5 4.5
5.6
5.35.4
4.7
5.0
4.54.7
5.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
EC FS GP KZN LIM MPU NC NW WC RSA
All <5 years
Key Message 6
In 2012, 26.9% of boys and 25.9% of girls aged 0-3 years
were found to be stunted.
Health’s dedicated funding for nutrition is equivalent to only
4% of education’s funding for the National School Nutrition
Programme.
However, health is responsible for the youngest children, for
whom nutrition has the most severe and long-lasting
negative impact.
3. EDUCATION
Key Message 1
Significant investment in education: 16% of 2016/17
consolidated budget expenditure goes to basic education.
High enrolment rate in primary and secondary schools, but
poor learning outcomes: 58% of Grade 4 leaners could not
read for meaning and 29% could not read at all.
In 2016, per learner allocations are:
• R12 231 for primary
• R15 718 for secondary.
Per learner allocations for public schools
11886 12087
13230
12051
13335
12048
12985
12081
14595
15794
12844
14529
12512
15274
12096
14630
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
FS GT KZN LIM MPU NC NW WC
Primary Secondary
Key Message 2
Many educators in South Africa lack the necessary skills and
knowledge.
Available evidence suggests that spending per educator on
teacher development averaged only R1 625 in 2015/16.
However, provinces record spending on teacher development
in different ways. Also, a range of donors fund teacher
development off-budget.
Teacher development per educator
1870
1372
2516
560451
2652
3201
2236
2554
1625
0
500
1000
1500
2000
2500
3000
3500
EC FS GT KZN LIM MPU NC NW WC RSA
Key Message 3
National government’s records suggest that in 2016/17
provinces allocated less for learner and teacher support
materials (LTSM) than in 2013/14, even before adjusting for
inflation.
In some provinces the amount for LTSM is included in the
transfers to public schools that manage their own funds. For
these schools the LTSM spending is hidden, because it is not
recorded separately from the rest of the transfer to the
school.
Allocation for LTSM per learner, 2015/16
155 157
247 244
209
370
129
479
139
235
0
50
100
150
200
250
300
350
400
450
500
EC FS GT KZN LIM MPU NC NW WC RSA
Key Message 4
There is substantial variation across provinces in funding of
Grade R.
North West allocates more than double what Limpopo does.
For the country as a whole, the Grade R per learner amount
is only about two-fifths of the primary school amount.
Grade R per learner and % enrolled
4143
3410
6325
3630
958
3994
4575
9227
5810
4275
85%
70%
53%
72%
99%
68%
87%
68%
61%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
EC FS GT KZN LIM MPU NC NW WC RSA
Amount per learner % enrolled
Key Message 5
There are two grants for school infrastructure.
2012/-
13
2013/-
14
2014/-
15
2015/-
16
2016/-
17
2017/-
18
2018/-
19
Education
infrastructure 5802 6643 7327 9354 9614 12780 13512
School
infrastructure
backlogs 1277 1956 2541 2047 2375
There has been some progress in funding school
infrastructure, but more than half of Eastern Cape schools
remain without adequate sanitation.
% of schools with basic utilities, 2009 & 2015
18%
22%20%
16%
50%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2009 2015 2009 2015 2009 2015
No/unreliable water No/unreliable electricity Pit/bucket/no sanitation
EC FS GT KZN LIM MPU NC NW WC RSA
4. SOCIAL DEVELOPMENT
Key Message 1
Spending on social grants accounts for 84% of the annual
consolidated national and provincial social development
budget. The three child grants together account for 36% of
the consolidated amount.
Welfare services are budgeted mainly by the provinces.
Key Message 2
The share of DSD provincial budgets allocated for services
for children and families increased substantially, from 21% in
2009/10 to 38% in 2016/17.
The share increased in all provinces except Free State.
Children & families as share of DSD budgets
15%
38%
19%20%
22%
18%
15%
17%
30%
21%
27%
37%
49%
39%
43%
37%
32%
27%
31%
38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
EC FS GT KZN LIM MPU NC NW WC RSA
2009/10 2016/17
Children & families per child
245
484
573
265320
349
609
297324
362307
758
1360
349
410
551
965
434
780
564
0
200
400
600
800
1000
1200
1400
1600
EC FS GT KZN LIM MPU NC NW WC RSA
Per child Per poor child
Key Message 3
For all provinces combined, prevention and early
intervention services account for only 18% of the children
and families budget.
All provinces except Gauteng plan decreases in the share
going to these services over the period 2016/17 to 2018/19.
Prevention & early intervention allocations
2,384
1,145
4,235
2,778
1,634
1,455
774
1,415
1,961
648
429
2,081
1,076
704 544
249 384
615
95 34
544
146 209 67 46 58 44
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
EC FS GT KZN LIM MPU NC NW WC
R m
illio
n
DSD Children & families PEI services PEI % of children & families
Key Message 4
In 2016/17, the combined allocations for ECD across the nine
provinces amounted to R2 285 million.
This is almost as much as the total for prevention and early
intervention services.
Nevertheless, the ECD allocation is only just over a quarter of
a reasonable measure* of need in the poorest households.
*100% 4-years;75% 3-years; 50% 1-2 years; 25% <1 year
ECD as % of need
17%
55%
42%
16%
22%
37%
43%
17%
48%
27%
0%
10%
20%
30%
40%
50%
60%
EC FS GT KZN LIM MPU NC NW WC Total
Key Message 5
The amount spent on child grants – at R60 149 million in
2016/17 – is nearly ten times as large as the R6 086 million
spent on welfare services for children.
In 2005, 5 648 800 children benefited from the child support
grant (CSG) and 256 949 from the foster child grant (FCG).
In 2015, the comparable numbers were 11 703 165 and
499 774 respectively.
% of children with grants by province
66%68%
42%
62%
75%
64%
72%
61%
48%
59%
4% 4%1%
3% 3% 2%4% 3%
2% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
EC FS GT KZN LIM MPU NC NW WC RSA
% with CSG % with FCG
For more information, please contact
Yulia Privalova Krieger
Deputy Representative
United Nations Children’s Fund
Equity House
659 Pienaar street, Brooklyn, Pretoria, 0181,
P.O. Box 4884, Pretoria, 0001, South Africa
www.unicef.org/southafrica
© United Nations Children’s Fund
October, 2016
