Budget speech commentary from Louis Botha, Absa Health Care Consultants

“The 2008 budget speech is promising in that it demonstrates government’s commitment to increase employment,to fight poverty,to improve social security and health services and to make access to private medical scheme insurance more affordable.

Social security and social grants have been extended through increases to old age grants and child support grants.

Health services will continue to be a focus area from a capacity,remuneration and a training perspective.At least 10000 more posts will be filled by 2010.The hospital revitalisation program will receive additional allocations,conditional grants for hiv/aids will increase and tertiary health services will be prioritised.Spending on health services is expected to grow by 10% per annum over the next three years.

Medical scheme members are also receiving some relief in that the monetary caps for tax-free contributions to medical schemes have been risen.

Although the above increases in the expenditure on social security and the provision of health services are welcomed,they need to be balanced by a steady economic growth,supported by continuous job creation and a growing export market.”