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Country analysis > South Africa Last update: 2020-11-27  

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Committee reports of the Taylor Committee into a social security system for South Africa.

Committee Report No 13: Financial Framework for Comprehensive Social Protection
[Download complete document - 158Kb ~ 1 min (46 pages)]

Table of contents

13.1. Introduction
13.2. Constitutional Provisions
13.3. An Overview of South Africa’s Social Security system
  13.3.1. Review of Key Issues Brought to the Attention of the Committee and Findings
13.4. Allocation of the Vertical Division
  13.4.1. Introduction
  13.4.2. Key Issues In Social Security Financing
  13.4.3. The Existing Framework For Financing Social Security In South Africa
  13.4.4. Overall Allocations To Social Security
  13.4.5. The Budget Framework And Intergovernmental System
  13.4.6. Sources Of Financing
  13.4.7. The Tax System And Social Security Benefits
13.5. Review of the Current Tax Dispensation
13.6. Review of Principles Underlying the Classification and use of Mixed Financing Options
  13.6.1. General comment
  13.6.2. General taxation
  13.6.3. User Charges
  13.6.4. Consumer tariffs
  13.6.5. Nominal Levies and Sundry Revenue
  13.6.6. Earmarked Taxes
13.7. Generic financial framework for Social Security
  13.7.1. Principles Underpinning Social Security Financial Management
  13.7.2. Recommendations
  13.7.3. Social Budget
  13.7.4. Fiscal Capacity and the Prioritization of Social Security Expenditure
13.8. Reform Proposals and their Financial Implications
  13.8.1. Policy options evaluated
  13.8.2. Results
13.9. Options and Issues for Consideration in South Africa
  13.9.1. Social Assistance Grants
13.10. Health Allocations
  13.10.1. Problems Identified
  13.10.2. Budget Determination
13.11. Summary of Findings and Recommendations


There is no single approach to financing or delivering social security. A range of approaches including user charges, earmarked taxation of one form or another, government regulation or general tax financing exists. In some instances non-contributory social assistance is combined with contributory social insurance to achieve greater institutional integration.

Mixed financing options for public and semi-public goods and services are not the exclusive domain of social security. Establishing these principles generically for government is however essential, quite aside from its applicability to social security. Therefore, in this chapter of the Report consideration is given to:
  1. The Constitution, particularly where it refers to aspects of Government finance;
  2. An overview of South Africa’s Social Security System and the key issues in Social Security financing;
  3. The principles underlying the use or selection of particular forms of taxation, levy or user fee for the social security system as a whole, or individual programmes;
  4. Accounting for alternative revenue sources in the national accounts, and their relationship to the National Revenue Fund;
  5. Financial management issues where mixed financing options are considered.

[Table of contents]

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