![]() ![]() The police services, defence, courts, state security and home affairs receive a combined R227.3bn. R378.5bn will be spent on myriad social grants, R259.2bn on health and another R259.7bn directed to community development projects such as human settlements, electrification programmes and investments in public transport. At least 24% - or R457bn - goes towards education and related programmes. Having collected tax revenue of R1.9 trillion, consolidated expenditure for 2023/24 is R2.2 trillion. ![]() The economy briefly bounced back after the end of the Covid-19 lockdowns to record 2.5% growth, but the outlook has deteriorated, and growth has been revised down to 1.4% between 20 mainly as a result of load-shedding and the war in Ukraine. It has allocated an additional R227bn over the next three years to mainly pay the Covid-19 social relief of distress grant, safety and security, education, health services and investments in local government and provincial infrastructure. “A one percentage point increase in inflation and interest rates, together with a R1 depreciation of the rand against the dollar, results in a R54.9bn increase in gross loan debt and a R6.2bn increase in debt-servicing costs.” In its Budget Review, the Treasury highlighted the sensitivity of debt and debt-servicing costs to interest rates, inflation and exchange rate shocks. Over the next three years SA will spend a staggering R1.1 trillion on interest payments to bondholders and other lenders. The Treasury has again flagged the high cost of servicing this debt, which increases as a percentage of budget revenue from 18% in 2022/23 to 19.8% in 2025/26, averaging at R366.8bn a year. ![]()
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