R500m to fund NHI pilot sites

Briefing media before presenting his Medium Term Budget Policy Statement in Parliament, Gordhan said the pilots would form the first part of a 14-year programme to introduce the NHI system.

Part of the first phase also involved revitalising hospitals, improving nursing and getting the public health system to provide a more caring environment.

To cover the NHI, the government would have to dig into its existing fiscus, but would also look at the possibility of tax increases or introducing new forms of taxes.

"But again that is too far away and it's something that is being worked on and what we are quite clear (about) is that whatever it is we are going to do, Treasury and the departments concerned are looking at a longer-term fiscal framework that ensures that over time we still maintain the principles of fiscal sustainability," said.

Commenting on the R1 trillion cost of a 20-year nuclear build programme revealed recently by the Minister of Energy Dipuo Peters, Gordhan said in the media briefing that it was still too early to say where the money to fund new nuclear power stations would come from.

Meanwhile, a discussion paper on the reform of South African's social security and retirement funding arrangements has been prepared and will be released before the end of the financial year.

The discussion paper will focus on the inclusion of a retirement pension in the contributory social security system.

Modernising the administrative arrangement for social assistance and social security is also proposed, as are changes to the regulatory framework for governing retirement funds.

These reforms would complement measures to strengthen labour market institutions, including more effective employment services linked to training opportunities.