. The Department's expenditure grew from R19.2 billion in 2009/10 to R27.9 billion in 2012/13 at an average annual rate of 13.3%. . Over the Medium Term period, expenditure is expected to grow to R36.7 billion, at an average annual rate of 9.4%. . The increase in both periods is driven largely by transfers to provinces for the conditional grants, with the main increase being on the HIV and AIDS and the introduction of the NHI grant.