National Treasury (South Africa), "Explanatory note on COVID-19 related expenditure for national and provinces, financial year 2020/21"
Summary
An explanatory note issued by the Director-General of South Africa's National Treasury on COVID-19 related expenditure for national departments and provinces in financial year 2020/21. The government announced a R500 billion support package in 2020, of which direct budget allocations were R142 billion, with the remainder through tax measures, a loan guarantee scheme and the Unemployment Insurance Fund. National and provincial departments spent R122.5 billion of the R142 billion allocated, including transfers of R59 billion to be reported by the spending agencies. Table 1 breaks allocations and expenditure down by category, including support to vulnerable households, health, municipalities, education and employment creation, and notes list the transfer payments.
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“National Treasury (South Africa), ‘Explanatory note on COVID-19 related expenditure for national and provinces, financial year 2020/21.’”
Original at www.treasury.gov.za. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/national-treasury-south-africa-explanatory-note-on-covid-19-related-ex-0bd8d109d8/
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EXPLANATORY NOTE ON COVID-19 RELATED EXPENDITURE FOR
NATIONAL AND PROVINCES
FINANCIAL YEAR 2020/21
ISSUED BY THE DIRECTOR-GENERAL: NATIONAL TREASURY
The Government of South Africa announced a R500 billion COVID-19 support package in
2020, the details of which was reported in the June 2020 Supplementary Budget. Direct budget
allocations amounted to R142 billion in proposed spending, with the remainder provided
through tax measures, a loan guarantee scheme and support provided through the
Unemployment Insurance Fund.
This report provides information on direct budget support (R142 billion) provided by national
and provincial departments. Spending is reported against the COVID-19 support package
announced in the 2020 Supplementary Budget and adjusted in the 2021 2nd Adjustments
Budget. Expenditure Information was extracted from the financial systems of government and
will be updated as and when final departmental financial statements are published.
National and provincial departments spent R122.5 billion of the R142 billion allocated in the
2020 Supplementary Budget. Included in this expenditure is transfers of R59 billion that will
be reported on in the financial reports of the relevant spending agencies.
Table 1: Allocations and expenditure on COVID-19 Response: 2020/21
2020 2021 2nd Total available National: Provinces: Total Included in Total
Supplementary Adjustments Expenditure Expenditure expenditure existing preliminary
Budget Budget April to April to April to transfers outcome
March March March April to
R million March
Support to vulnerable households for 6 months 40 891 6 797 47 688 19 659 19 659 28 029 47 688
Health 21 544 21 544 5 913 19 181 25 094 25 094
Support to municipalities 20 034 20 034 – 20 034 20 034
Other frontline services 13 623 13 623 5 176 5 176 5 176
Basic and higher education* 12 541 6 999 19 540 146 6 155 6 301 5 000 11 301
Support to public entities 5 964 5 964 – – 5 964 5 964
Other COVID-19 interventions 1 766 1 766 408 3 792 4 200 4 200
National: Employment creation allocation, Small and 6 061 4 116 10 176 1 551 1 551 1 551
informal business support, and job protection
Provincial: Employment creation allocation 1 520 1 520 1 520 1 520 1 520
Allocated for COVID-19 fiscal relief package 122 425 19 431 141 856 32 852 30 648 63 500
Provisional allocations for COVID-19 fiscal relief package 19 575 -19 431 144 – –
Total 142 000 – 142 000 32 852 30 648 63 500 59 027 122 527
Source: National Treasury. Expenditure data sourced from the Basic Accounting System (BAS)
* Includes Provincial Employment creation allocation
Enquiries: Communications Unit
Email: media@treasury.gov.za
Tel: (012) 315 5046
Details of transfer payments are as follows:
• Support to vulnerable households: The Social Relief of Distress grants were paid as
part of the existing grant management system by SASSA. The full budget was paid to
SASSA by the DSD and details of spending will be provided in the financial statements
of SASSA.
• Support to municipalities: The COVID-19 allocation was paid as part of the monthly
transfers to local government. Spending by local government on COVID-19
interventions are reported in the Section 71 report for Local Government published on
the National Treasury website.
• Basic and higher education: The R5 billion allocated to Higher Education Institutions
was paid as part of higher education grants.
• Allocations to support public entities have been paid as part of entity transfers.
A spreadsheet containing monthly spending data for national and provincial departments
accompanies this release.
Issued by National Treasury
Date: 11 February 2022
Enquiries: Communications Unit
Email: media@treasury.gov.za
Tel: (012) 315 5944
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