How better targeting of social spending affects social delivery in South Africa

Figures & data

Figure 1: Concentration curves depicting pro-rich and pro-poor social spending

Figure 2: The effect of decreasing income inequality on the Lorenz curve

Figure 3: Share of spending received by the poorest 40% of the population by social spending category

Table 1: Concentration ratios by social sector, 2000 and 2006

	2000	2006
School education	–0.121	–0.128
Tertiary education	0.499	0.579
All social grants	–0.371	–0.357
• Child support grants	–0.247	–0.318
• Disability grants	–0.291	–0.288
• Old-age pensions	–0.412	–0.436
Health	–0.087	–0.110
• Public clinics	–0.163	–0.245
• Public hospitals	–0.071	–0.071
Housing	0.160	0.070
Total across services	–0.106	–0.146
Notes: The assumption, in the absence of 2006 tax incidence data, was that the Personal Income Tax share (other taxes were not considered) in each decile had remained unchanged. Income/expenditure figures for 2000 and 2006 are not strictly comparable, thus the shift shown in this table may be just an artefact of poor comparability of survey data.

Table 2: Concentration ratios* and Gini coefficients, 1995, 2000 and 2006

	1995	2000	2006
Total social spending	(–0.095)	(–0.106)	(–0.146)
Total income/expenditure (excluding grants)	0.666	0.707	0.690
Taxes paid	0.755	0.829	0.829
Income plus benefits	0.578	0.576	0.526
Income minus taxes plus benefits	0.528	0.528	0.470
Effect of fiscal process (change in Gini coefficient)	–0.138	–0.179	–0.220
*Concentration ratios in parentheses.

Figure 4: Real per capita benefits from all social spending by quintile, 1995, 2000 and 2006 (in rand values in 2000)

Figure 5: Real per capita benefits from all social spending by race group, 1995, 2000 and 2006 (in rand values in 2000)

Table 3: Growth in the number of beneficiaries of social grants, 2001/02 to 2006/07

Type of grant	2001/02	2006/07	% growth
Old age pension	1 877 538	2 195 018	16.9%
War veteran	6 175	2 340	–62.1%
Disability	627 481	1 422 808	126.7%
Grant-in-aid	9 489	31 918	236.4%
Foster care	85 910	400 503	366.2%
Care dependency	28 897	98 631	241.3%
Child support	947 724	7 863 841	729.8%
All grants	3 583 214	12 015 059	235.3%

Figure 6: Levels of satisfaction (%) with hospital services among individuals visiting public and private hospitals, 2006 Notes.

Figure 7: Household response to illness in six African countries, 1998 Notes.