2021/22 Submission for the Division of Revenue
Under the theme of “Sustainable Financing of Social and Economic Infrastructure and Services”, this Submission begins the conversation about the implications of Covid-19 for public finances. The most immediate impact on the macro-economic and fiscal framework is the substantial overall increase in government spending on health care and social protection, in particular for the most vulnerable of society. Therefore, in light of the current human, health and economic crisis levels, the Submission begins with an overview of South Africa’s pre-Covid-19 economic structure and a brief analysis of economic data for the first quarter of 2020. It then considers the fiscal implications of Covid-19, and looks at agriculture and food security, and the catalytic role of municipal services of water, electricity and sanitation.
Among the structural weaknesses exposed by the Covid-19 pandemic are the imbalances within the health care system. To this end, and given South Africa’s human development index, the Commission seeks to address structural challenges of health care financing, by proposing an evidence-based approach to pricing and costing health care, and reviewing the implications of the legislative reform for ensuring universal access of health care through the National Health Insurance (NHI) Bill of 2019 in South Africa. Lastly, the Commission examines the challenges that already exist in public family and community welfare services, which are targeted at the most vulnerable and yet are inadequately funded, in particular early childhood development and inclusive education.
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