Extra-budgetary institutions continue to inject substantial cash into education, health and housing

Extra-budgetary institutions continue to inject substantial cash into education, health and housing

The 2012/2013 financial report of extra-budgetary accounts and funds (EBAs) indicate the ongoing cash injections which are aimed at addressing numerous challenges facing South Africa. EBAs are government funded organisations that do not operate through normal parliamentary budget processes. The report measures the impact of both the economic and functional effect of government spending, gauging the extent of the cost of certain functions (for example, health, education, social protection, construction, transport and communication) against their economic impacts (for example, salaries and wages).

Examples of increased EBA expenditure for education, health and housing include the following:

An increase of 47%, from R5,5 billion in 2011/12 to R8,2 billion in 2012/13, in education was due to additional payments by the various education EBAs (such as the National Student Financial Aid Scheme (NSFAS), the South African Qualifications Authority and the Council for Quality Assurance in General and Further Education and Training (Umalusi)). NSFAS is mandated to efficiently and effectively provide financial aid to students from poor and working class families in a sustainable manner. This was meant to promote access to, and success in, higher and further education and training in pursuit of South Africa’s national and human resource development goals on behalf of the Department of Higher Education and Training.

For health, an increase of 36% from R4,4 billion in 2011/2012, to R6,1 billion in 2012/2013 was due to increased operating expenses by the National Health and Laboratory Service, the South African National AIDS Trust and the Council for Medical Schemes.

As far as housing and community amenities are concerned, an increase of 19,9% in cash payments from R9,7 billion in 2011/2012 to R11,6 billion in 2012/2013 was reported. This was due to increased cash payments by the Water Trading Entity, the Social Housing Regulatory Authority and the National Home-Builders Registration Council.

For more information please download the full report here.