1. Total budget for 2014/15 is R33,9 billion growing at an average of 9,3% to R39,4 billion over the MTEF; Of this R30,1 billion or 88,7% are Conditional Grants to Provinces; The National Department has retained R1,5 billion as an In- Direct Grant to spend on behalf of Provinces i.e. Infrastructure, NHI and HPV Vaccines; Compensation grows by an average of 7,7% over the MTEF and Goods and Services by 14,8% mainly due to the addition of the HPV Vaccine grant. BUDGET OVERVIEW

2. Conditional Grants Schedules Conditional Grants Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Schedule 4AHealth Professions Training & Development Grant 2,321,788 2,428,590 2,557,305 National Tertiary Services Grant 10,168,235 10,635,974 11,199,680 Schedule 5AComprehensive HIV/AIDS Grant 12,311,322 13,957,043 15,696,765 Health Facility Revitalisation Grant 5,239,981 5,388,790 5,652,280 National Health Insurance Grant 70,000 73,967 77,887 Schedule 6ANational Health Grant 1,575,000 1,635,000 1,516,000 National Health Insurance Component 395,000 414,000 401,000 Health Facility Revitalisation Component 980,000 1,021,000 1,115,000 Human Pappilomavirus Component 200,000 - Conditional Grants transferred to provinces S4 & 5 30,111,326 32,484,364 35,183,917 Conditional Grants kept at National Health 1,575,000 1,635,000 1,516,000 Total Sector Conditional Grants 31,686,326 34,119,364 36,699,917

3. Conditional Grants Growth

4. Health Professions Training Grant Health Professions Training & Development Grant Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Eastern Cape 199,874 209,068 220,149 Free State 146,419 153,154 161,271 Gauteng 811,114 848,425 893,391 KwaZulu Natal 292,837 306,308 322,542 Limpopo 116,206 121,552 127,994 Mpumalanga 95,288 99,671 104,954 Northern Cape 76,697 80,225 84,477 North West 104,586 109,397 115,195 Western Cape 478,767 500,790 527,332 Total 2,321,788 2,428,590 2,557,305

5. National Tertiary Services Grant Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Eastern Cape 786,007 822,163 865,738 Free State 898,091 939,403 989,191 Gauteng 3,493,891 3,654,610 3,848,304 KwaZulu Natal 1,496,427 1,565,263 1,648,222 Limpopo 323,158 338,024 355,939 Mpumalanga 97,116 101,584 106,968 Northern Cape 298,727 312,468 329,029 North West 237,264 248,178 261,331 Western Cape 2,537,554 2,654,281 2,794,958 Total 10,168,235 10,635,974 11,199,680

6. Comprehensive HIV/AIDS Grant Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Eastern Cape 1,449,237 1,602,290 1,802,013 Free State 843,026 926,533 1,042,024 Gauteng 2,632,578 2,975,139 3,345,986 KwaZulu Natal 3,257,992 3,874,085 4,356,983 Limpopo 978,132 1,073,882 1,207,740 Mpumalanga 818,836 942,045 1,059,469 Northern Cape 342,789 377,191 424,207 North West 936,938 1,029,187 1,157,473 Western Cape 1,051,794 1,156,691 1,300,870 Total 12,311,322 13,957,043 15,696,765

7. Health Facility Revitalisation Grant Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Eastern Cape 599,231 442,930 - Free State 448,962 554,950 - Gauteng 671,033 303,630 - KwaZulu Natal 1,162,469 1,090,431 - Limpopo 467,442 184,255 - Mpumalanga 343,509 277,942 - Northern Cape 421,428 446,407 - North West 486,121 558,721 - Western Cape 639,786 645,200 - Unallocated - 884,324 5,652,280 Total 5,239,981 5,388,790 5,652,280

8. National Health Insurance Grant Budget Allocation - 2014/15 Budget Allocation - 2015/16 Budget Allocation - 2016/17 R'000 Eastern Cape 7,000 7,397 7,789 Free State 7,000 7,397 7,789 Gauteng 7,000 7,397 7,789 KwaZulu Natal 14,000 14,793 15,577 Limpopo 7,000 7,397 7,789 Mpumalanga 7,000 7,397 7,789 Northern Cape 7,000 7,397 7,789 North West 7,000 7,396 7,788 Western Cape 7,000 7,396 7,788 Total 70,000 73,967 77,887

9. Challenge in Health sector is that some Provinces do not or are unable to pay for basic services e.g. Vaccines, Laboratory Tests, Blood etc.; Root cause is that allocations on these items are not adequately budgeted (e.g. only enough budget for 10 months) and overspending and non-payment of suppliers occurs annually; Further cause is poor cash flow management and prioritisation also contributes to the non-payment of suppliers; In Health Sector the budget for Personnel has grown annually at the expense of Goods and Services due to many appointments; Common knowledge that funds earmarked for specific programmes are not allocated as intended by either Provincial Health Departments or Provincial Treasuries; Key components have been identified as Non-negotiables. NON NEGOTIABLE: BACKGROUND

10. 10 NON NEGOTIABLE: COMPONENTS

11. CONCLUSION  National DoH Annual Performance Plan 2014/15 to 2016/17 is aligned to the National DoH Strategic Plan 2014-2019, which is founded on government’s 2030 vision outlined in the National Development Plan 2030.  National DoH Annual Performance Plan 2014/15 to 2016/17 reflects interventions to improve the health system and health outcomes for all South Africans.  The Department will continue to work towards improving healthcare equity, quality and access through the introduction of the National Health Insurance, and other Health Sector reforms through various initiatives. 11