Pretoria: The South African government has announced a significant injection of funds into HIV/AIDS research, allocating R410 million over the medium term to address a funding shortfall created by the withdrawal of financial support from the United States.

According to South African Government News Agency, which was released in conjunction with the Budget Speech on Wednesday, this funding will be redirected from the Department of Health to the South African Medical Research Council. This move forms part of a co-funding partnership with global donors to maintain essential HIV/AIDS research initiatives.

Overall health spending is projected to increase by 4.2%, reaching R334.3 billion by the 2028/29 fiscal year. Primary healthcare, primarily delivered through district health services, will receive 44.4% of the health budget, underscoring its role as the most accessible and cost-effective care option. The compensation of employees remains the largest component of the health budget, accounting for 64.6%. Efforts to improve efficiency in this area include better management of commuted overtime and rural allowances. An advisory committee, appointed by Health Minister Aaron Motsoaledi, is tasked with recommending changes to key human resources policies and practices. Additionally, R24 million is being reallocated over the Medium-Term Expenditure Framework (MTEF) period to the Office of Health Standards Compliance, enabling it to fill crucial positions and increase the number of health facility inspections annually.

Meanwhile, the National Treasury has revealed plans for a thorough assessment of the national skills ecosystem in the forthcoming year. The skills development levy, funded by employers, supports sector education and training authorities as well as the National Skills Fund, with projected levy income of R88.2 billion over the 2026 MTEF period. Despite this funding, these institutions face challenges in providing the skills necessary to fuel economic growth. The Government Technical Advisory Centre has been commissioned to conduct this comprehensive review.

For the 2026/27 financial year, post-school education and training is set to receive R155.8 billion. The National Student Financial Aid Scheme will allocate R54.3 billion in 2026/27 to offer bursaries, facilitating access to higher education for 744,203 poor and academically deserving students at universities and technical and vocational education and training colleges. Basic education will receive approximately R358.6 billion during the same period. The National School Nutrition Programme, which provides meals to over 9.9 million learners in 19,800 schools, will see its allocations rise by 4.5% to R33.9 billion over the medium term. However, these allocations have not been adjusted for the lower inflation outlook, given that food price inflation exceeds the overall inflation rate. Expenditure on early childhood development is set to increase from R12.2 billion in 2025/26 to R18 billion over the medium term, allowing for the expansion of services to an additional 300,000 children.