Children are disproportionately represented among the poor and official estimates of child poverty in SA range from 51% to 67%. Interventions aimed at reversing the debilitating effects of poverty require well-targeted resources, an understanding that consistent financial investment is imperative, and spending by departments that are adept at converting resources into meaningful outputs for children.
In the latest budget proposals, for every R100, almost R17 is allocated to basic education, R14 is earmarked for health services and R13 is set aside to support mostly social grant spending. However, R11 is allocated to meeting national debt obligations, thus reducing spending on social services generally, and children’s programmes more specifically.
Budget 2018 represents a mixed bag for children. One, above-inflationary increases to social grants for children are generally good news, but its overall impact is muted by the high costs of food prices. Spending on the child support grant grows at an above-inflation rate of 2.4% in 2018, while over the next three years, the grant is projected to increase 2.5%. The care dependency grant is projected to grow 3.0% above inflation over the next three years.
Two, in recognising the deleterious effects of violence on women and children, the government has set aside R800m over the medium-term to address this issue. Provincial governments are expected to target areas of high need and use the opportunity to learn more about how best to utilise scarce resources in this area of work.
Three, the 2018 budget sets aside R400m to address the implications of a recent court challenge, which involves the funding of nonprofit organisations (NPOs) that deliver social welfare services in provinces. Solutions are needed around the ideal level of funding for NPOs as well as fine-tuning government financing mechanisms to deliver predictable funding to NPOS.
Four, additional monies to expand the search for National Health Insurance (NHI) service delivery models is a step in the right direction as are increases to the infrastructure and subsidy funding for students at technical and vocational education and training (TVET) colleges.
Five, the early childhood development (ECD) conditional grant that is used to expand the number of qualifying ECD centres grows rapidly in 2018, even though its growth over the remainder of the medium term is muted. The ECD grant is expected to subsidise a further 113,448 children over the medium term, in addition to the more than 607,000 children who were subsidised at the end of 2016-17.
Cuts to provincial spending over the next three years amount to R18.4bn, which represents 1% of total provincial funding. The expenditure reductions have impacted heavily on the basic education budget, which is expected to grow by 1.3% above inflation on average over the next three years.
The growth in spending on basic education is lower than overall government expenditure, and planned allocations to the post-school education and training (PSET) sector grow almost eight times faster than spending on basic education. In a context where there are resonant concerns about the quality of school education as evidenced by the country’s latest reading achievement scores, budget 2018 complicates attempts at raising the quality of school education.
Another spending area that has been hit hard by the reductions in the spending ceiling is spending on infrastructure projects. National surveys paint a concerning picture of rural children’s poor access to key health services and the reductions in infrastructure spending that will delay the upgrading and establishment of much-needed education and health facilities for rural children. Finally, provinces’ challenges with accumulating health bills may compromise service delivery and planning generally, and in the health sector more particularly.
The government’s commitment to a social wage for children is still intact, but the substantial reduction in the funding for provinces is cause for concern. While the budget leaves citizens with less money in their pockets, children in affluent families will continue to have access to good schools, excellent medical care and be cushioned against the downward spiral in the economy.
The budget also affirms adolescent children, who benefit from additional spending on TVET colleges, and who are likely to further benefit from free higher education when they exit the formal schooling phase. Children who are located in urban areas will continue to benefit from existing school and health infrastructure, while their rural peers will have to do with less because of the cuts to infrastructure spending.
More young children in the pre-schooling phase will benefit from the expansion of qualifying ECD centres, but the slow rate of growth in spending on basic education constrains opportunities for poor learners in public schools.
The 2018 budget reinforces the necessity of an equity focus in a country where poverty and inequality continue to bias social and developmental outcomes. Unicef is advising additional investment in social services in rural areas, especially in the education and health sectors, as this remains urgent.
• De Lys is Unicef’s SA representative
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