In order for the Department of Health (DoH) to achieve its mandate and aims, the National Treasury allocated R21.4 billion for the 2010/11 financial year and 91 per cent of the allocation is for conditional grants transfers to provinces. The DoH anticipates budget pressures that will have a negative impact on achieving set goals and objectives specifically under compensation of employees funding which it reported as inadequate. The Committee noted the challenges the Health sector experiences; these include ageing infrastructure, spending of conditional grants and lack of critical human resources. The Committee wishes to advise the department to improve its spending on its conditional grant allocations.