NHI Funds Show Government’s Dedication

Finance Minister Enoch Godongwana has allocated a R848 billion budget for the health sector with
at least R1 billion to be directed to the National Health Insurance (NHI).

He tabled the 2024 budget in the National Assembly on Wednesday afternoon. Godongwana’s new
budget has revised some of the budget cuts made in November last year. He has added R251 billion
back into the budget framework.

At the same time, R57.6 billion has been added to pay the salaries of teachers, nurses and doctors
among other critical services. The education sector was allocated an additional R25.7 billion for the
carry-through costs of the wage increase over the medium term.

“At 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,” he said.

He allocated R848 billion to the health sector over the Medium Term Expenditure Framework
[MTEF]. “These 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.

“The allocation for the NHI is a demonstration of the government’s 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,” said Godongwana.

He said the money would be used for “building a national health information system and digital
patient records”.

“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. Strengthening facility and district
management in preparation for contracting. Granting semi-autonomous status for central (and
potentially other) hospitals and developing reference prices and provider payment methods for
hospitals,” said Godongwana.