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Inequalities remain in provinces' spending

Provincial spending on social services, such as education, health and social welfare has remained stable in recent years, but substantial inequalities still exist amongst provinces, according to the latest intergovernmental fiscal review. Provinces that have had to incorporate former homeland administrations, such as Limpopo, Eastern Cape and KwaZulu- Natal, typically spend more on high wage bills, leaving less of their budgets for service delivery. Provincial inequalities also exist in the health sector, hampering service delivery mainly in poorer provinces. Although the provincial health budget is meant to increase from R33,2bn in 2002-03 to R36,9bn in 2003-04, expenditure per capita varies widely amongst provinces. Limpopo spent R586 an uninsured person, North West spent R628, while Gauteng's expenditure per capita was R1580. Expenditure on staff costs in the health sector has fallen steadily in recent years, from 64,2% of the provincial health budget in 1999-00 to 58,1% in 2002-03, but is expected to increase in the next few years as government tries to improve the distribution and retention of health personnel. Scarcity of health professionals is a serious problem in mainly rural provinces. For example, one dentist in Eastern Cape is required to service 190117 people who use the public health service, compared to 25458 in Gauteng. In Limpopo, one pharmacist services 48067 people, compared to 18994 in Gauteng. The higher growth in poorer provinces confirmed the trend towards improvement in interprovincial equity and towards equalisation of access to grants, the review said. (Source: Nasreen Seria, Business Day, Apr 09 2003) The Intergovernmental Fiscal Review can be accessed at http://www.treasury.gov.za/ (see left-hand side for IFR link, then open 2003 version or go directly to http://www.treasury.gov.za/documents/ifr/2003/chp05.pdf)