SA spends R11.6bn more on public debt in 2012-2013 financial year

2014-06-25 18:12

The government’s payment of public debt increased by about R11.6 billion in the 2012-2013 financial year, according to statistics released by Statistics SA today.

South Africa’s financial year begins on March 1 and ends on February 28.

According to the government’s financial statistics, which show where money was spent and how much was spent, there was an increase of R11.6 billion in cash payments for public debt transactions from R76.3 billion in 2011-2012 to R88 billion in 2012-2013; and this was mainly due to payments of interest on public debt.

The spending on social protection increased from R106.5 billion in 2011-2012 to R114.1 billion, mainly due to increased social grants to households by the department of social development.

There was an increase of R5.5 billion in cash payments for education from R42 billion in 2011-2012 to R47.6 billion in 2012-2013, mainly due to increased grants paid by the department of higher education and training to extra-budgetary institutions, universities and universities of technology to fund education infrastructure and capital transfers by the department of basic education to provincial governments for the provision of basic services in schools and spending on other constructions.

One of the biggest increases – R25.7 billion – was an increase in grants paid to provincial governments, which rose from R333.9 billion in 2011-2012 to R359.6 billion in 2012-2013.

Another big increase was cash payments for executive and legislative services and foreign affairs (other than foreign aid), which grew from R43 billion in 2011-2012 to R54.5 billion in 2012-2013. The increase was mainly due to payments to the Southern African Customs Union (Sacu). Sacu is a customs agreement between Lesotho, Swaziland, Botswana, Namibia and South Africa to facilitate regional trade.

Cash payments for housing and community amenities also increased from R44.9 billion in 2011-2012 to R51.4 billion in 2012-2013 due to an increase in capital transfers to municipalities by the department of human settlements and the department of cooperative governance and traditional affairs to fund the national human settlements development and the eradication of backlogs in municipal infrastructure programme.

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