The South African government spent R1,97\u00a0trillion in 2019\/20, representing a 10% rise from the R1,79\u00a0trillion recorded in 2018\/19.1<\/sup> The release consolidates data from various other surveys published during the year, covering 707 institutions that include national and provincial government departments, municipalities, extra-budgetary accounts and funds, and higher education institutions.<\/p>\n General public services, education and social protection the biggest spending items<\/strong><\/p>\n The graphic below (Figure 1) illustrates what government spent money on in 2019\/20. The bubbles represent functions, and the larger the size of the bubble, the higher the expenditure on the function.<\/p>\n General government’s biggest expenditure items in 2019\/20 were general public services, education and social protection. Together, these three items accounted for almost 60% of total spending (click on the image to enlarge).<\/p>\n Figure 1: South African general government expenditure (2019\/20)<\/u><\/p>\n Looking at the very top of the graphic, you might wonder what the smaller bubble of executive and legislative services entails. This is a sizable function that accounted for R199\u00a0billion (or 10%) of total spending. Executive and legislative services include costs mainly related to the administration of parliament, the provincial legislatures and mayoral offices.<\/p>\n Just to the left of this component is interest payments on public debt. In 2019\/20, South Africa owed almost R3,2\u00a0trillion in gross loan debt, according to National Treasury, giving rise to substantial interest payments.2<\/sup> Figure 1 shows that interest payments accounted for 10% (or R205\u00a0billion) of total expenditure. This is more than what government spent on public order (police, prisons and courts), and about the same as the expenditure on primary and secondary education combined.<\/p>\n Eskom, social grants and debt payments the biggest cost drivers in 2019\/20<\/strong><\/p>\n Government spent an additional R182,8\u00a0billion in 2019\/20 compared with 2018\/19. The matrix below breaks this down and provides a snapshot of what drove spending higher (in red) and what government spent less money on (in blue).<\/p>\n Figure 2: Change in government expenditure by government institution and function<\/u><\/p>\n Economic affairs was the most significant factor that pushed overall government spending higher in 2019\/20. National government expenditure on economic affairs jumped by R49,7\u00a0billion. A large capital transfer from the Department of Public Enterprises to Eskom was a significant contributor to this rise.<\/p>\n General public services under national government increased by R25,4\u00a0billion. This was mainly due to a rise in interest payments on public debt (up by R22,9\u00a0billion or 12,6%).<\/p>\n Provincial government increased spending on education by R16,5\u00a0billion, driven largely by spending on educational services by Gauteng and KwaZulu-Natal.<\/p>\n The Water Trading Entity recorded a decline in operating expenditure in 2019\/20, contributing to the R2,2\u00a0billion decrease listed under extra-budgetary accounts and funds (housing and community amenities).<\/p>\n For more information, download the Financial statistics of consolidated general government<\/em> statistical release and time series data here<\/a>.<\/p>\n 1 <\/sup>When interpreting these figures, note that the data published in the Financial statistics of consolidated general government<\/em> statistical release (a) are adjusted for the reference period 1 April \u2013 31 March and (b) in order to compare across all levels of government, data were converted from an accrual basis of recording to a cash basis of recording.<\/p>\n 2<\/sup> National Treasury. 2020 Budget Review<\/em>, Table 10 (view here<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":" Total South African government spending flirted with the R2\u00a0trillion mark in the 2019\/20 financial year, according to data published by Stats SA. The data, recently published in the Financial statistics of consolidated general government statistical release, covers the period before the COVID-19 pandemic, providing a benchmark for when comparable pandemic-era data become available. The South read more »<\/a><\/p>\n![\"pic1\"](\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2021\/12\/pic1.jpg\")
<\/a><\/p>\n<\/a><\/p>\n