The Department's expenditure grew from R16, 4 billion in 2008/09 to R25, 9 billion in 2011/12 at an average annual rate of 16, 5%. Over the Medium Term period, expenditure was expected to grow to R33, 9 billion, at an average annual rate of 9, 25%. The increase in both periods was driven largely by transfers to provinces for the conditional grants, with the main increase being on the HIV and AIDS and the introduction of NHI grant and Nursing Colleges grant.