South Africa Increases Health and Defense Budgets Amid US Aid Cuts

South African lawmakers plan to boost health and defense spending while increasing value-added tax by 0.5%, raising living costs. Cuts to USAID, including the termination of the PEPFAR initiative, put additional strain on the health system, which serves the world’s largest HIV population.

In response to reductions in foreign aid, South African lawmakers have prioritized increased funding allocations for health and defense. The government also announced an increase of 0.5% in the value-added tax, which will consequently elevate the cost of living for citizens. The country’s health system, which supports the largest population of individuals with HIV globally and maintains 5.5 million patients on essential antiretroviral medication, is under added pressure due to decreased support from USAID. This situation has been exacerbated by President Donald Trump’s decision in early February to terminate PEPFAR, a program that historically provided over $400 million each year to South Africa’s HIV-related services and organizations.

In summary, the South African government is taking steps to increase budgetary support for vital health and defense sectors amidst significant cuts to international aid. The planned tax increase serves as a counterbalance to expected funding deficits, highlighting the challenges the country faces in sustaining effective healthcare programs, particularly in managing its large HIV/AIDS population. This financial strategy underscores the increasing strain on the system as external aid diminishes.

Original Source: www.voiceofalexandria.com