Where R2-trillion in government spending went

The government spent R2.04-trillion in the 2022/23 financial year, a rise of 6.1% from R1.92-trillion in 2021/22, according to Stats SA.

Just more than half the expenses in the year from April 1 2022 to March 31 2023 was allocated to grants paid to other levels of government, institutions and foreign governments.

Of the R1.12-trillion paid to this category, provincial government was the main beneficiary, receiving almost two-thirds (or R694bn). SA’s provincial government departments are responsible for various functions, most notably health and education.

Extrabudgetary accounts and funds — public institutions responsible for delivering services to the public on behalf of the government — received R180bn (or 16%) of grants, followed by local government (R151bn, or 13%). Examples of extrabudgetary accounts and funds include the Road Accident Fund (RAF), the SA Revenue Service (Sars) and the Unemployment Insurance Fund (UIF).

Higher education institutions and foreign governments received about R50bn (4%) each and international institutions R4bn (0.4%).

The contribution of interest paid on debt increased from 10% in 2014/15 to 15% in 2022/23. In rand terms, interest paid on debt more than doubled in the 2014/15 to 2022/23 period, from R114.8bn to R308.5bn, an average growth rate of 13.2% a year.

Social benefits represented the third-largest line item in 2022/23 after grants and interest paid on debt, accounting for R242.4bn.

Most (96.7%) of this allocation was for the social grants programme, funding household grants for child support, old age, sickness and disability, among other things. The remaining 3.3% was for employment-related social benefits.

Since 2014/15, the social benefit allocation has grown by an average of 8.8% a year.

Stats SA said these financial statistics represent data collected from national government, not the broader general government, which comprises national, provincial, local, extrabudgetary accounts and funds and institutions of higher learning.

Reports are scheduled to be published for extrabudgetary accounts and funds in August, provincial government in September, higher education institutions in October and consolidated general government in November.

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