Focus Note: Human Settlements in the 2024/25 Budget

Increasing 4.4% to R33.15 billion in 2024/25, the budget of the National Department of Human Settlements (NDHS) is the main vehicle to resource the delivery of integrated, sustainable human settlements nationwide. Although the departmental budget is set to increase by a nominal average annual growth rate of 1.6% over the medium term, this constitutes a 3.0% decrease in real terms. Furthermore, due to fiscal constraints, there is a R3.147 billion baseline reduction in the Department’s budget in 2024/25 alone, with the bulk of the cuts taken from the Human Settlements Development Grant (HSDG), with likely negative impacts on housing delivery.

This Focus Note examines the 2024/25 medium term budget of the NDHS, with a particular focus on transfers to provinces and municipalities for the implementation of critical housing subsidy programmes. The purpose is to identify the salient points from the recently-tabled budget which are important for housing sector practitioners.

Abstract based directly on source.