After two years of strict budget limits in healthcare, Finance Minister Enoch Godongwana’s 2025 budget speech aimed to fix funding shortages in the public health system. The health budget will rise from R277 billion in 2024/25 to R298.8 billion in 2025/26 and is expected to reach R329 billion by 2027/28, with an average annual growth of 5.6%. This is better than the previous average increase of 3.4%, which did not keep pace with inflation.
Godongwana noted that the public health system lost nearly 9,000 healthcare workers last year due to insufficient funds. Debts in the sector have reached almost R22 billion. He announced that R28.9 billion has been allocated to retain about 9,300 healthcare workers, hire 800 post-community service doctors, and ensure pharmacies are stocked with medicines.
Budget concerns
Despite some optimism about this budget, concerns remain regarding the ability to recover from past budget cuts. Recent budget cuts have frozen hiring and reduced funding for equipment and services. Professor Lydia Cairncross, a senior clinician, stated that recent budget cuts have negatively impacted staffing and access to care, resulting in longer wait times and delayed treatments.
Cairncross expressed hope for stability over the next few years, stating that unexpected cuts could seriously impact healthcare delivery. The Rural Health Advocacy Project welcomed the health funding as a positive step but emphasised the need for effective governance to ensure that services reach those in need.
Importance of leadership
Cairncross also emphasised the importance of strong leadership in health facilities and the need to protect budgets for health, education, and social services from future cuts. A significant concern remains the decrease in funding from the US President’s Emergency Plan for AIDS Relief, which has historically supported HIV/AIDS programs in South Africa. This funding was halted after an executive order paused most foreign development assistance in January.