The provincial equitable share amounts to R338 billion in 2013/14, and conditional grants to provinces will total R77 billion. Additional allocations have been made to increase employment of social workers and to provide additional support to non-governmental organisations which provide critical welfare services. There is additional funding for teachers in the poorest 20 per cent of schools and grade R classes, and for community library services. Provinces are also funded for an expansion in HIV and Aids programmes and an improved TB diagnosis system.

Infrastructure transfers to provinces have increased sharply in recent years, growing from R4.8 billion in 2005/06 to R39.7 billion in 2012/13. To improve the quality of spending, the application process for infrastructure grants is being revised: provinces will be required to submit building plans two years ahead of implementation and will only receive allocations if plans meet certain benchmarks.

A total of R85 billion is allocated for transfer to municipalities in 2013/14, rising to R101 billion in 2015/16. Additional allocations are made for municipal water infrastructure, public transport and integrated city development.