How Did Government Spend R2.04 Trillion In One Financial Year?

The South African national government has increased its spending from R1.17 trillion in financial year 2014/2015, to R2.04 trillion in financial year 2022/2023.

Statistics South Africas (StatsSA) latest set of national government financial data shows the national government spent trillions of rands through grants, interest paid on debt, social benefits, compensation of employees, and goods and services. The R2,04 trillion excludes capital expenditure and represents expense cash flows recorded by all 42 national government departments.

The bulk money of the national government spending, which is 55%, was spent on grants paid to other levels of government, institutions, and foreign governments. Whereas 15% was spent on interest paid on debt. While 12% went to social benefits, 9% to compensation of employees, 4% to goods and services, and the remaining 4% went to other.

In financial year 2014/2015, the allocation of funds was different. Out of the R1.17 trillion that the national government spent that year, 60% went to grants, 10% was spent on interest paid on debt, 11% spent on social benefits, another 11% on compensation of employees, 6% on goods and services, and 4% on other.

StatsSA reveal that 55% spent on grants accounted for R1.12 trillion in the financial 2022/2023. The bulk of the money went to provincial governments, amounting to R694 billion. Provincial government departments are responsible for various functions at a provincial level, most of the allocation of funds at the provincial level goes to health and education.