Godongwana lists PEPFAR withdrawal as one of several spending pressures in his budget

CAPE TOWN - Finance Minister Enoch Godongwana has listed several spending pressures in his budget, like the withdrawal of the President’s Emergency Plan for Aids Relief (PEPFAR), which may need funding later this year.

The National Treasury told a media briefing before the budget on Wednesday that the withdrawal means they need R1.3 billion to plug the hole left by the withdrawal of the PEPFAR funds earlier this year.

Godongwana also said the Passenger Rail Agency of South Africa (PRASA) is also experiencing spending pressures that will need to be funded at a later stage.

Initial estimates by the Department of Health had put the PEPFAR funding withdrawal shortfall at more than R7 billion, saying close to 15,000 jobs in the sector were at risk.

However, National Treasury chief director for Health and Social Development, Mark Blecher, said that the figure provided, following an audit by a top four accounting firm, put the figure at R1.3 billion, with another R200 million for research.

In his speech, Godongwana said the latest numbers required to fund the PEPFAR shortfall were submitted this week.

“We’ve not made provision for the allocation of that now. The Department of Health has just given us the numbers a couple of days ago. Once the resources allow, we will deal with this matter.” 

Godongwana said other spending pressures that can’t be addressed at the moment include accommodating population changes that impact provincial equitable share allocations, and strengthening the office of the chief justice and Statistics South Africa.

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