In the 2022/23 financial year, South Africa’s extra-budgetary accounts and funds (EBAs) generated or received a total of R390.2 billion in revenue, according to the latest data.
These EBAs are crucial in the financial management of the country, providing essential public services on behalf of the state.
SANRAL Leads in Revenue
The South African National Roads Agency Limited (SANRAL) emerged as the largest recipient, securing R55.3 billion, which accounts for 14.2% of the total EBA revenue.
A significant portion of SANRAL’s revenue, R46.6 billion, came from government financial transfers, including a special appropriation grant of R23.7 billion from the Department of Transport.
This grant was specifically allocated to pay off debts related to SANRAL’s toll portfolio, leading to a substantial increase in its total revenue from R28.5 billion in 2021/22 to R55.3 billion in 2022/23.
Other major revenue contributors in 2022/23 included the National Student Financial Aid Scheme, the Road Accident Fund, the Unemployment Insurance Fund, and the Property Management Trading Entity.
Revenue Sources and Expenditures
While some EBAs generate their own revenue, most, like SANRAL, rely heavily on grants from national and provincial government departments.
In 2022/23, grants made up nearly half of the total EBA revenue. Other revenue sources included taxes, social contributions, and receipts from sales of goods and services, as well as interest received.
On the expenditure side, purchases of goods and services accounted for just over a third of total EBA spending in 2022/23.
This category saw a 16% increase from the previous year, primarily due to higher payments for repairs and maintenance, advertising, and administrative costs by SANRAL.
Social benefits were the second largest expense, making up 21.8% of the total. These benefits, which include cash or in-kind transfers to the public, help mitigate social risks such as unemployment, sickness, disability, and injury.
The ‘other payments’ category, contributing 18.2%, mainly consisted of transfers to households, with significant spending by the National Student Financial Aid Scheme (NSFAS).
NSFAS receives most of its funding from the Department of Higher Education and Training to provide financial aid to eligible students at public universities and Technical and Vocational Education and Training (TVET) colleges.
The financial activities of South Africa’s EBAs highlight their vital role in supporting public services and infrastructure.
With significant contributions from entities like SANRAL and NSFAS, these accounts and funds are essential in addressing the country’s socio-economic challenges and promoting development.
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