<h1>South Africa Boosts Health and Defense Budgets Amid US Aid Cuts; VAT to Rise by 0.5% for Funding</h1> South Africa plans to increase spending on health and defense following cuts to US aid, particularly affecting HIV programs. The 2025 budget earmarks an additional 28.9 billion rand for healthcare to support salaries for medical personnel and doctors. This increase is crucial as the country manages the world's largest HIV population, with many dependent on antiretroviral drugs. To fund this, the government will raise VAT by 0.5%, impacting the cost of living. Additionally, 5 billion rand is allocated to strengthen military forces amid regional conflicts. The budget awaits parliamentary approval, with potential political consequences if rejected.