What is the process for deciding how much funding is available for health service provision? | South Africa What is the process for deciding how much funding is available for health service provision? | South Africa

13 Aug 2022

The country’s national and provincial budget process runs from April to March on an annual basis. The table below describes the budget process for South Africa (adapted from source, Public Education Office, 2015):

Table 10: National and provincial budget process

Time period Description
March to June 1.     Parliament deliberates and adopts a fiscal framework for the upcoming year

2.     Hearings begin on the Division of Revenue Bill;

3.     Division of Revenue Bill is passed in Parliament

 April Departments submit requests for roll over budget of qualifying unspent funds from the previous financial year.  This is submitted at the end of April and assessed by National Treasury.
 May to June If submissions are approved, Treasury issues roll over allocation letters and the Medium-Term Expenditure Framework (MTEF) budget guidelines to departments.
July 1.     During July, departments submit the details about their expenditure estimations (to Treasury) for the upcoming budget. Treasury analyses these, recommends changes to budget programme structures, and provides approval during this time;

2.     July is also a time where policy priorities and implementation considerations are discussed;

3.     The Appropriation Bill is passed by Parliament (National Assembly votes to pass the budget via this Bill)

4.     Funds allocated to Departments on a monthly basis

August The MINCOMBUD (i.e., the Ministers’ Committee on the Budget) approves the fiscal framework, division of revenue and the sectoral budget priorities.
September 1.     Recommendations of budget allocations for key priorities are presented by the Medium-Term Expenditure Committee (MTEC) to the MINCOMBUD;

2.     Final recommendations are taken to Cabinet for approval;

3.     September is also the time of the year for any Adjustment budget processes to begin for unforeseeable and unavoidable expenditures.

October to November 1.     Adjustment budget allocations are appropriated during October;

2.     Parliament tables the following during this period:

·     The key government priorities stated in the Medium-Term Budget Policy Statement (MTBPS);

·     Size of the budget envelope for the next MTEF period;

·     Proposed division of revenue

·     Major provincial and local government allocations

3.     Finalisation of the allocations to National departments and proposed to Cabinet (mid-November)

4.     Cabinet sends out approval letters for allocations.

December to February 1.     Parliament provides the Minister of Finance with a budget review and recommendations report on the:

·     MTBPS;

·     Fiscal framework;

·     Division of Revenue

2.     Minister of Finance analyses these reports during this period, finalises all budget related information, and tables in Parliament.


Public Education Office. (2015). How the Budget works for us. www.parliament.gov.za