The 2023 Budget increases allocations for all three spheres of government, to assist with urgent spending pressures. Relative to the 2022 Budget, direct provincial allocations increase by R92.7 billion, to R2.17 trillion over the medium term.

This increase consists of R76.9 billion added to the provincial equitable share and R15.8 billion added to direct conditional grants.

Local government allocations will increase by a total of R14.3 billion, made up of R8.1 billion in the local government equitable share and R6.2 billion in direct conditional grants. This takes the total direct allocation to R522 billion over the same period.

These allocations alleviate some of the financial pressures, particularly in health, education, and free basic services where the costs of providing services are rising.