Treasury on overall expenditure trends 2018/19 preliminary outcomes 

31 May 2019

South African provinces have spent R591.2 billion, or 98.8 per cent, of their adjusted budget of R598.6 billion, according to the preliminary outcomes of the provincial revenue and expenditure outcomes report for 2018/19. This represents an increase of 6.3 per cent or R35.1 billion compared to the R556.1 billion spent in 2017/18. 

Preliminary spending on education in 2018/19 amounts to R239.6 billion or 99 per cent of the R241.9 billion adjusted budget. This represents an increase of 6.3 per cent or R14.1 billion compared to 2017/18. Education remains the largest item on provincial budgets (40.4 per cent). 

Health expenditure amounts to R195.6 billion, or 99.7 per cent, of the R196.1 billion adjusted budget in 2018/19. This represents an increase of 8.2 per cent or R14.8 billion compared to the 2017/18 financial year. Health is the second largest item on provincial budgets (32.8 per cent).  

Social development expenditure in 2018/19 amounts to R19.8 billion or 96.6 per cent of the R20.5 billion adjusted budget. This represents an increase of 5.6 per cent or R1 billion compared to the R18.8 billion spent over the same period in the previous financial year.

Personnel expenditure (compensation of employees) amounts to R358.5 billion or 99.3 per cent of the R361.1 billion adjusted budget as at 31 March 2019. This represents an increase of 7.3 per cent or R24.4 billion compared to the 2017/18 financial year. 

Preliminary spending on goods and services amounts to R120 billion or 96.2 per cent of the R124.8 billion adjusted budget as at 31 March 2019. This reflects an increase of 7.8 per cent or R8.7 billion compared to the 2017/18 financial year. 

In aggregate, expenditure on capital (payments for capital assets) amounts to R33 billion or 93.3 per cent of the adjusted budget of R35.4 billion. This reflects a decrease of 5.4 per cent or R1.9 billion compared to the same period in the previous financial year. 

Capital expenditure by provincial education departments amounts to R9.8 billion or 95.8 per cent of the R10.2 billion adjusted budget. This is R727.3 million or 6.9 per cent less than the R10.5 billion spent over the same period in the previous financial year. 

Capital expenditure by provincial health departments amounts to R8.9 billion or 91.5 per cent of the adjusted budget of R9.7 billion. This represents an increase of R520.6 million or 6.2 per cent compared to the R8.3 billion spent over the same period in 2017/18. 

The biggest share of provincial capital budgets is for public works, and roads and transport (32.6 per cent). Preliminary spending for 2018/19 amounts to R11.1 billion or 96.7 per cent of the R11.5 billion adjusted budget. 

Preliminary provincial own revenue collected in 2018/19 amounts to R21.2 billion or 111.7 per cent of the R19 billion revised own revenue budget. By the end of 2018/19, national government had transferred R470.3 billion of the equitable share and R101.7 billion of conditional grants to provinces.

Issued by National Treasury, 1 June 2019