South Africa. UNICEF/Bart de Ruigh

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "South Africa. UNICEF/Bart de Ruigh"

Transcription

1 South Africa UNICEF/Bart de Ruigh MACRO BUDGET SOUTH AFRICA 2017/2018 1

2 0.5 % Real average annual rate of decline of provincial government financing over the MTEF UNICEF/Bart de Ruigh Preface This budget brief is one of four that explore the extent to which the national budget and social services sector budgets address the needs of children under 18 years in SOUTH AFRICA. The briefs analyse the size and composition of budget allocations for fiscal year 2017/18, as well as offer insights into the efficiency, effectiveness, equity and adequacy of past spending. Their main objectives are to synthesise complex budget information so that it is easily understood by stakeholders and to present key messages to inform financial decision-making processes. Key Messages and Recommendations Aggregate spending trends and priorities: Lower tax revenues as a result of poor economic growth have reduced the speed at which the South African government is able to finance commitments outlined in the National Development Plan (NDP). Furthermore, departmental baseline spending is being reduced over the Medium Term Expenditure Framework (MTEF). The government is encouraged to: 1. Protect programmes and services that benefit children without compromising service delivery in the neediest communities; 2. Build capacity-enhanced planning, managing, monitoring, and execution in departments that serve children to spend resources more effectively; 3. Avoid using spending performance as the only criterion for reducing departments baseline spending. Decentralisation and financing of subnational governments: Provincial government financing is under pressure and declining at a real average annual rate of 0.5 per cent over the MTEF. Programmes that service children appear to absorb most of the cuts. The government is encouraged to: 1. Prioritise basic education, primary healthcare and social welfare services that support poor and vulnerable children and their families; 2. Encourage provincial governments to build linkages with tertiary educational institutions to maximise poor children s gains from the improved funding of universities; 3. Build capacity in provincial governments to spend all the available resources that have been set aside for the various infrastructure grants; 4. Avoid aggressive cuts to frontline service delivery staff in health, education, social welfare and public works programmes that serve poor and vulnerable communities. UNICEF/Hearfield 2

3 Sources of financing for the national budget: Public debt is set to rise from 51 per cent of the Gross Domestic Product (GDP) in 2016/17 to 52.4 per cent of GDP in 2019/20. In addition, debt service costs are projected to increase from 3.4 per cent in 2017/18 to 3.6 per cent at the end of the MTEF. Given this scenario, the government is encouraged to: 1. Implement the much-discussed sugar tax and earmark these revenues for programmes and services that benefit children; 2. Continue to pursue cost-cutting measures that do not affect services for children and vulnerable households; 3. Reinforce the commitment to adhere to agreed-to spending ceilings so that fiscal space is created for programmes and services that benefit children. Developments in Public Finance Management (PFM): Implementing a revenue-sharing formula in a country where provinces do not have the same fiscal capacity, or where there is differential capacity within provinces to use resources effectively, makes it difficult to frame allocation criteria that satisfy all relevant stakeholders. Nonetheless, the government is encouraged to: 1. Refine the indicators in the education component of the provincial revenue-sharing formula to reflect the relative poverty of learners; 2. Adopt the principle that funding should follow the learner; 3. Continue the conservative approach for revising the formula to avoid disrupting services for children at the provincial level. UNICEF/Hearfield 3

4 Section 1. Macro and Socioeconomic Context UNICEF/Bart de Ruigh The performance of the South African economy must be viewed against the backdrop of persistent socio-economic challenges that show no clear signs of being resolved. Table 1 indicates that the real GDP growth is forecast to be 1.0 per cent for the last financial year, while the unemployment rate remains high, at almost 27 per cent of the working-age population. Furthermore, the price of food is increasing at a faster rate than general price increases. Table 1: Macro-economic trends in South Africa: 2015/16 to 2017/18 between the ages of 0 and 17 years and 51 per cent of children are considered to be growing up in poor households. 1 South Africa s Human Development Index (HDI) falls in the medium range and continues to be negatively impacted by stagnant HIV prevalence rates and the poor quality of the basic education system. Table 2: Social development trends in South Africa, 2011 to Key social development indicators Key economic indicators Total population, million GDP, 2016/17 ZAR4.4 trillion Total child population, 2016 (0 17 years) 18.6 million GDP per capita, 2016 (ZAR) ZAR79,925 Children as a % of population, % Real GDP growth, 2016/17 1.0% Unemployment rate, % Headline inflation, June % Food inflation, June % Budget deficit, 2017/18 3.1% Taxation as a % of GDP, 2016/ % Debt service costs (interests) as a % of GDP, 2017/18 Donor funding as a % of revenue, 2015/16 3.4% 0.8% Poverty rate, 2015 (Lower Bound Poverty Line) Child poverty rate, 2015 (Lower Bound Poverty Line) Human Development Index, % 51.0% Expected years of schooling, 2015 (male) 12.5 Expected years of schooling, 2015 (female) 13.6 HIV prevalence rates (overall) 12.6% HIV prevalence rates, years (women) 21.3% HIV prevalence rates, years (youth) 4.8% 0.67 (medium HDI ranking) Source: Budget Review and General Household Survey (GHS) 2016 (own calculations) Life expectancy: male, years The pessimism that marks the general economy is mirrored in some of the socio-economic indicators displayed in Table 2. More than a third of the country s population are children Life expectancy: female, years Sources: Statistics South Africa 2017 and GHS 2016 (official reports); UNDP

5 The performance of the South African economy can best be described as sluggish as evidenced by the low real GDP growth rate over the last six years. To put economic growth into perspective, the country s National Development Plan (2011) estimated that the economy needed to grow at an average rate of 5 per cent per annum until 2030, to address structural challenges such as unemployment and inequality. Over the entire period represented in the graph below, the economy was unable to breach the 3 per cent growth mark. Given the challenges, it is admirable that the headline inflation rate was kept within the targeted 3 6% band. Tax revenue as a percentage of GDP consistently increases from about 25% of GDP to a forecast 27.2% of GDP at the end of the present MTEF cycle. Figure 1: Performance of the South African economy, 2013/14 to 2019/20 (%) 2013/14 Outcome 2014/15 Outcome 2015/16 Outcome 2016/17 Revised estimate 2017/18 MTEF 2018/19 MTEF 2019/20 MTEF Tax revenue as a % of GDP Headline Inflation (%) Real GDP growth (%) Percentage Source: Budget Review 2017 The severe drought curtailed the contribution of agriculture to the country s GDP in 2016, but the government has predicted better returns for this sector because of rains returning to some part of the country (Budget Review, 2017). Table 3 shows that the largest contributor to economic growth and job creation was the services sector, as can be seen in the manner in which the growth rates across these sectors mirror the overall GDP growth rate during the past three years. Table 3: Real sector growth trends compared to GDP growth, 2011 to Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction Wholesale and retail trade Transport and communication Finance, real estate and business services Personal services General government GDP Source: Budget Review

6 The main instruments that affect planning in government are the National Development Plan (NDP), which sets out long-term planning goals for various facets of social and economic life in South Africa and the Medium- Term Strategic Framework (MTSF), 3 which serves to domesticate the electoral mandate of the governing party. The most recent MTSF ( ) is the first of its kind to directly engage with the NDP and attempts to ensure greater alignment between the goals of the NDP and the priorities that guide budget planning and implementation. Some of the key MTSF goals that have a direct bearing on the government s budget are: Rapid economic growth and job creation; Rural development, land and agrarian reform and food security; Ensuring access to adequate human settlements and quality basic services; Improving the quality of and expanding access to education and training; Ensuring quality health care and social security for all citizens; Fighting corruption and crime. The Annual Reports of departments include reporting on the performance of most of the adopted indicators. UNICEF/Hearfield Takeaways: The below-par economic growth has reduced the speed at which the South African government is able to finance commitments outlined in the NDP and the MTSF. Given that the low growth scenario is projected to be unchanged over the present MTEF, serious questions are raised about the ability of the government to protect spending on programmes and services that benefit children. A shrinking resources base will require a combination of cost-savings and the strategic prioritisation of spending commitments. Government departments that serve children will be under pressure to spend their existing resources effectively to avoid any changes to their baseline spending plans. 6

7 Section 2. Aggregate Spending Trends and Priorities UNICEF/Bart de Ruigh Size of Spending Consolidated government expenditure and proposed allocations constitute between per cent of GDP over recent and projected years (Figure 2). For instance, government spending as a share of the economy totalled 29 per cent in 2015/16, which was more than a percentage point higher than prior years. However, with planned reductions over departments baseline spending plans, allocations are predicted to constitute less than 28 per cent of GDP at the end of the MTEF in 2019/20. Figure 2: Consolidated government expenditure and allocations as a % of the Gross Domestic Product (GDP), 2013/14 to 2019/ /14 Outcome /15 Outcome /16 Outcome 2016/17 Revised estimate 2017/18 MTEF /19 MTEF 2019/20 MTEF Percentage of GDP Source: Budget Review 2017 Spending Changes The gap between nominal and real government spending (and allocations) remains largely unchanged over the same period, suggesting a relatively predictable inflationary environment that should strengthen budget credibility. Consolidated government spending is projected to grow by less than 2 per cent over the present MTEF and has maintained a similar trajectory over the past six years (Figure 3). Given the government s commitment to curtail departmental spending, it is highly likely that the growth in allocations at the end of the MTEF will be much smaller than the projected 2.5 per cent. 7

8 Figure 3: Annual growth in consolidated government expenditure and allocation, 2013/14 to 2019/20 (2016/17=100) Annual percentage change Nominal Real /15 Outcome 2015/16 Outcome 2016/17 Revised estimate 2017/18 MTEF 2018/19 MTEF 2019/20 MTEF Source: Budget Review 2017 Spending and Allocation Priorities in the Consolidated Government Budget Non-interest expenditure (exclusive of debt servicing costs) is projected to grow from R1.2 trillion in 2016/17 to R1.5 trillion at the end of the present MTEF, at a real average annual rate of 1.7 per cent. Figure 4 shows that spending and proposed allocations to the Social Development function takes precedence over the present MTEF as measured in terms of its real average annual growth rate (1.8%), which is slightly above that of consolidated government expenditure (1.7%). The proposed allocations to basic education and health are projected to remain stagnant over the MTEF. Smaller functions, such as the Housing and Amenities function, however, are projected to have real average annual increases in line with the overall government average. It should be abundantly clear that South African departments operate in a restrained spending environment. Given the limited economic growth mentioned earlier, some of these proposed allocations might actually be revised downward. Figure 4: Consolidated government expenditure and allocation by function, 2015/16, 2017/18 and 2019/20 (ZAR billion) South Africa Housing and community amenities Defence Public order and safety Health Social Development Education ,200 1,323 1, /16 Outcome 2019/20 MTEF 2017/18 MTEF ,000 1,200 1,400 1,600 1,800 Source: Budget Review 2017 and Provincial Estimates of Revenue and Expenditure 2017 The resolve of the South African government to adhere to spending ceilings is demonstrated by consistently delivering spending outcomes in line with those set in budget documents (Figure 5). For example, in 2015/16, estimates that were presented in February 2015 were virtually the same when new estimates were presented in October 2015 via the MTBPS 2015 (0.3% difference) and a full year later in February 2016 via the 2016 Budget Review when the 2015 ceiling only differed by 0.4 per cent. 8

9 Figure 5: Adherence to expenditure ceilings, 2014/15 and 2015/ MTBPS 2016 Budget Review / / MTBPS Budget Review Source: Budget Review 2017 (own calculations) Recurrent and Capital Spending and Allocations in the Consolidated Government Budget Spending and allocations on compensation remain around 37 per cent of the total budget, which is the largest expense. The OECD (2017) 4 estimates that wages constitute about 14 per cent of South Africa s GDP compared to other middle-income countries where the average share of wages is between 4 and 12 per cent. Transfers to households come in at around 18 per cent of total government spending, and the bulk of these transfers is on social grants. Given the centrality of spending on tertiary institutions, transfers to universities alone consumed 2.4 per cent of total government resources in 2017/18, while in 2019/20, that share is projected to grow to 2.5 per cent. Spending pressures are felt in the acquisition of capital assets, whose shares of total government expenditure dropped from 4.6 per cent in 2013/14 to 4.1 per cent in 2017/18 and fell to only 3.7 per cent at the end of the present MTEF. Figure 6 represents the spending intentions of government as it tries to protect the real value of social grants, as well as extending coverage and responding to the financing pressures that emanated in the university sector. Figure 6: Expenditure and allocation by type in the consolidated government budget, 2013/14 to 2019/20 (%) Percentage of consolidated expenditure/allocation /14 Outcome /15 Outcome /16 Outcome /17 Revised estimate /18 MTEF /19 MTEF /20 MTEF Compensation Transfer to households Transfers to universities Transfers to NPOs Payment for capital assets Source: Budget Review 2017 Takeaways: A critical feature of the present MTEF is the downward revisions to departmental baselines. The information presented thus far suggests that further spending cuts are now inevitable. Given the government s commitment to maintain the real value of key social grants, the Social Development function performs better than Education in attracting additional resources. In addition to elevated social development spending, transfers to universities and spending on wages of government employees absorb whatever fiscal space is available. Overall, most departments are operating in a constrained spending environment and unless the economy starts growing again, sharp intra-departmental and inter-sectoral trade-offs will become the norm over the next few years. There is evidence that the spending proposals for the 2017 MTEF are virtually cast in stone and that the MTEF represents the government s actual spending stance and commitments. 9

10 Section 3. Decentralisation and Subnational Spending UNICEF/Hearfield Decentralisation Context and Subnational Funding Guidelines The Constitution of the Republic of South Africa grants equal status to the three spheres of government in South Africa and promotes an overall principle of interdependent governance (Constitution of Republic of South Africa, 1997). Furthermore, the Constitution (Chapter 6) spells out the legislative authority of provinces via the provincial legislatures and Schedule 4 provides for functional areas of concurrent national and provincial legislative competence. Table 4: Distributing the equitable shares by provinces, 2017 In terms of the financing of provincial governments, Section 214 (a-c) of the Constitution 5 makes provision for three different sources, namely a vertical division of revenue (among the three spheres of government), a horizontal division of revenue (using a formula to divide resources among provinces), and through special allocations (conditional grants that have strict conditions for their use). The vertical division of revenue is decided politically, while the horizontal process relies on a funding formula based on relative need (demographic data). The provincial equitable shares (PES) formula contains six components with different weights. Education (48%) Health (27%) Basic share (16%) Poverty (3%) Economic activity (1.0%) Institutional (5%) Weighted average Eastern Cape 15.1% 13.5% 12.6% 16.3% 7.6% 11.1% 14.0% Free State 5.3% 5.3% 5.1% 5.2% 5.0% 11.1% 5.6% Gauteng 18.0% 21.8% 24.1% 17.3% 34.3% 11.1% 19.8% KwaZulu-Natal 22.3% 21.7% 19.8% 22.2% 16.1% 11.1% 21.1% Limpopo 13.0% 10.3% 10.4% 13.6% 7.1% 11.1% 11.7% Mpumalanga 8.4% 7.3% 7.7% 9.1% 7.5% 11.1% 8.1% Northern Cape 2.3% 2.1% 2.1% 2.2% 2.1% 11.1% 2.7% North West 6.5% 6.7% 6.8% 8.0% 6.5% 11.1% 6.9% Western Cape 9.1% 11.3% 11.3% 6.1% 13.6% 11.1% 10.1% Total 100% 100% 100% 100% 100% 100% 100% Source: Budget Review 2017 Note: Green represents the highest value, while red represents the lowest value for each component and the total weighted share by province. 10

11 Box 1 Let s imagine how this formula works in practice. If R100 billion was available to be spent on provinces, then the Eastern Cape provincial government should receive 14% of R100 billion (or R14 billion). Almost half of this money (48%) would have been decided using the education component. That means of the R48 billion decided through the education component, the Eastern Cape government would have received 15.1% of R48 billion (or R7.2 billion). For the health component, the Eastern Cape is entitled to 13.5% of the R27 billion (or R3.6 billion). The formula assumes that the cost of running government is the same for all provinces and the Eastern Cape will receive 11.1% of R11.1 billion (or R1.2 billion). The same calculation is made for all the components; these are tallied and the final shares will be paid over in quarterly instalments during the financial year. Provincial Spending and Allocation Trends, 2015/16 to 2019/20 Provincial spending grew from R487 billion in 2015/16 to an expected R618 billion in 2019/20, which amounts to a real average annual growth rate of -0.5 per cent (Figure 7). This is generally not good news for children, as some of the key services for children are funded and delivered at the provincial level. The provincial annual growth curves are bunched together, with the exception of the present financial year, where the extent of funding decline is much larger for the Gauteng, Limpopo and Northern Cape provincial governments. In 2017/18, consolidated provincial spending is planned to decline by almost 2 per cent, while the next financial year (2018/19) merely moderates the extent of the decline in financing provincial governments (-0.2%). Figure 7: Real annual growth rates in subnational expenditure and allocations, 2015/16 to 2019/20 8 Eastern Cape Real annual change (percentage) / / / /20 Free State Gauteng KwaZulu-NaTal Limpopo Mapumalanga Northern Cape North West Western Cape South Africa Source: Provincial Revenue and Estimates of Expenditure 2017 Spending Disparities by Provincial Government The Limpopo and KwaZulu-Natal provinces have a smaller share of total provincial spending than would be predicted by their weighted equitable shares, suggesting lower capacity to leverage own funding than other provinces. For example, KwaZulu-Natal receives 21.1 per cent of national transfers through the equitable share formula, but its share of total provincial allocations (equitable shares plus own revenue) is only 20.9 per cent, while the corresponding numbers for Limpopo are 11.7 per cent (weighted shares) and 11.1 per cent (equitable shares plus own revenue) (Figure 8). The Gauteng and Mpumalanga provinces have more or less the same weighted and total provincial allocation shares, while total allocations for the remaining provinces are higher than their corresponding shares of the transfers made available by the national government to provinces. 11

12 Figure 8: Comparing actual allocations by provincial governments to their weighted shares of national transfers in 2017/18 (%) Western Cape North West Northern Cape Mpumalanga Limpopo KwaZulu-Natal Gauteng Free State Eastern Cape PES, 2017/ /18 MTEF Percentage Source: Provincial Revenue and Estimates of Expenditure 2017 and Budget Review 2017 Adjusting total provincial spending for the child population, the Northern Cape (smallest population overall) has the largest spending per child over these two years, while Limpopo and the Eastern Cape have the lowest per-child spending in 2015/16 and 2016/17 respectively. In 2015/16, the national per-child spending was R26,000 and three provinces, namely the Eastern Cape, Kwazulu-Natal and Limpopo spent below the national average. In 2016/17, the national per-child spending was R28,000 and the same three provinces, with the addition of Mpumalanga, spent below the national average. Figure 9: Per-child spending by provincial governments in 2015/16 and 2016/17 (ZAR) Per-child spending by province (ZAR) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,651 26,283 Eastern Cape 33,231 36,205 Free State 26,205 Gauteng 29,383 25,684 27,049 KwaZulu-Natal 24,091 27,062 Limpopo 25,225 Mpumalanga 27, /16 Outcome 2016/17 Revised estimate 35,295 Northern Cape 38,663 26,534 29,018 North West 27,186 29,296 Western Cape 26,195 28,495 South Africa Source: Provincial Revenue and GHS 2015 and 2016 (own calculations) Note: Children between the ages of 0 and 17 years. Takeaways: Provincial government expenditure is under severe strain and is only projected to recover at the end of the present MTEF. Provincial spending and allocations grew from R487 billion in 2015/16 to R618 billion in 2019/20 at a real average annual rate of -0.5 per cent. The largest adjustment in allocations is made in the present financial year (2017/18) where provincial budgets lose close to 2 per cent in real value, while the next financial year merely moderates the real losses in allocations. Two of the traditionally poor provinces, KwaZulu-Natal and Limpopo, have a lower share of total provincial allocations in 2017/18, which is at odds with their higher overall share of national transfers. When total provincial spending is adjusted for the size of the child population, the Northern Cape has the largest per-child spending in 2015/16 and 2016/17, while the Eastern Cape, KwaZulu-Natal, and Limpopo spent below the national averages in both years. 12

13 Section 4. Financing the National Budget Domestic Revenue To off-set the negative impact of lower economic growth on the country s revenue position, tax revenue (mostly personal income tax) is set to rise from 26.2 per cent in 2015/16 to 27.2 per cent of GDP at the end of the present MTEF (Figure 10). Consolidated domestic revenue is projected to achieve a surplus over consolidated non-interest expenditure in 2017/18 and 2019/20, while the country s gross borrowing UNICEF/Pawelczyk requirement increases from 15.8 per cent in 2017/18 to 17.7 per cent at the end of the present MTEF. Furthermore, debt service costs, as a percentage of the GDP, are projected to increase from 3.4 per cent in 2017/18 to 3.6 per cent in 2019/20. The government argues that a combination of consistent reductions of departmental baseline spending and higher taxes will narrow the consolidated budget deficit from 3.4 per cent of GDP in 2016/17 to 2.6 per cent in 2019/20. Figure 10: Government expenditure financing, 2015/16 to 2019/20 Government expenditure financing, 2015/16 to 2019/20 (percentage) Domestic revenue as a % of GDP Tax revenue as a % of GDP Debt service costs as a % of GDP Domestic revenue as a % of total expenditure Gross borrowing requirement as a % of total expenditure 2015/16 Outcome 2016/17 Revised estimate 2017/18 MTEF 2018/19 MTEF 2019/20 MTEF Source: Budget Review 2017 Note: Percentages are indicated for 2017/18 and 2019/20 only. Borrowing Total government debt is set to increase from 49.4 per cent in 2015/16 to 52.4 per cent in 2019/20 and the OECD latest review notes that the country is fast approaching the upper limit of 40 55% debt-to-gdp ratio considered prudent in developing country contexts (Figure 11). Around 10 per cent of the government s debt portfolio consists of international loans, while long-term domestic debt makes up 78 per cent of total government debt. 13

14 Figure 11: Public debt as a percentage of GDP, 2015/16 to 2019/ Percentage of GDP / / / / /20 Source: Budget Review 2017 The costs of servicing (the country s rising) debt increased from R129 billion (or 3.2% of GDP) in 2015/16 to more than R197 billion (or 3.6% of GDP) at the end of the present MTEF. As can be seen from Figure 12, the largest debt servicing costs are on domestic loans, while a much smaller part of the costs involve servicing interests on international loans. UNICEF/Schermbrucker Figure 12: Rising costs of servicing public debt, 2015/16 to 2019/20 (ZAR billion) 2019/20 MTEF /19 MTEF /18 MTEF /17 Revised estimate /16 Outcome ZAR billion Total Foreign loans Domestic loans Source: Budget Review

15 Additional Financing Options A UNICEF-commissioned study into fiscal space in South Africa 6 has highlighted several issues. Some of the salient findings include: (i) Levying taxes on the consumption of luxury goods and introducing the much-discussed sugar tax could lead to a sizeable amount of new revenue that could be used to finance programmes and services that benefit children; (ii) Building on the ongoing efforts to achieve cost-savings, such as reducing unnecessary travel, curbing the use of external consultants and generally decreasing spending on non-priority areas that have a poor spending record. At the same time, it is unrealistic to expect all additional savings to be channelled to priority expenditures for children because of the government s other stated priorities. These include: funding higher education; contributing to the New BRICS Development Bank; increasing the contingency reserve fund for small business development; strengthening government s planning, monitoring and evaluation capacity; and decreasing the country s debt levels. At a minimum, the fiscal space study notes that priority sectors (for children) need to show that they are managing their funds well and maximizing the effectiveness of their current budgets, which is the starting point for receiving more resources. UNICEF/Pirozzi Takeaways: In order to fill the void left by lower revenues, the government is set to increase taxes (especially personal income tax) to close the revenue gap. Tax revenue (mostly personal income tax) is set to rise from 26.2 per cent in 2015/16 to 27.2 per cent of GDP at the end of the present MTEF. The fact that domestic revenues are still able to finance non-interest expenditure is encouraging and this in itself provides a powerful incentive for government to rein in wastefulness, focus on priority spending for children and improve the quality of spending. Public debt is set to rise from 51 per cent of GDP in 2016/17 to 52.4 per cent in 2019/20, which is indicative of the financial pressures the government is under to deliver vital services. With an increase in public debt, the cost of servicing government debt is expected to increase from 3.2 per cent in 2015/16 to 3.6 per cent in 2019/20. 15

16 Section 5. New Developments in PFM UNICEF/Hearfield PFM Challenges in South Africa The main challenge is that during a time when targeted spending on the poor should be accelerated, the economy is underperforming, thus depriving the budget of muchneeded resources to tackle the country s formidable social and economic problems. This is best summed up when examining the reductions to the baseline budgets of all three spheres of government. Table 5 shows that provincial governments are required to surrender almost R1.8 billion in 2017/18, of which the bulk of the reductions are taken from the various conditional grants. A much smaller amount (between R500 and R550 million) will be deducted from the unconditional block grant, which to some extent preserves the small fiscal space that provinces have at their disposal. One can surmise that variable spending rates on the conditional grants might have prompted a more conservative implementation of conditional grant funding. Table 5: Baseline reductions by sphere of government, 2017/18 to 2019/20 (ZAR million) 2017/ / /20 National government 3,910 2,297 2,770 Compensation of employees Goods and services Transfers to public entities 2,850 1,240 1,539 Other national spending items Provincial government 1,757 1,882 1,955 Provincial equitable share Provincial conditional grants 1,257 1,353 1,397 Local government The Challenge of Providing Resources to Provincial Governments on an Equitable Footing Because more than 80 per cent of provincial governments revenue are allocated through the equitable share formula, it is imperative to understand whether this formula can be improved to better serve the needs of the most marginalised people in South Africa. The introduction of the Social Security Agency (SASSA) removed the need to retain the social development component, while infrastructure backlogs are now funded through a conditional grant. Weights for the remaining components were adjusted to reflect expenditure patterns at the provincial level. Table 6: Comparing the original and existing PES formula (weights are in brackets) Old PES formula (introduced in 1996) PES formula in use (introduced since 2004) Education (41%) Education (48%) Health (19%) Health (27%) Social development (18%) Component was removed Economic activity (7%) Economic activity (1%) Backlog (3%) Component was removed Basic share (7%) Basic share (16%) Institutional (5%) Institutional (5%) Poverty (3%) Local government conditional grants Source: Budget Review

17 UNICEF/Hearfield Implementing a revenue-sharing allocation formula in a country where provinces do not have the same fiscal capacity or where there is differential capacity within provinces to use resources in the best possible way, makes it difficult to frame allocation criteria that satisfy all relevant stakeholders. Rao and Khumalo (2004) 8 argued that any allocation formula needs to consider cost factors that are beyond the immediate control of provincial governments. The Financial and Fiscal Commission (FFC) (2000) took this process one step further when it called for a costed norms approach, which requires the government to define an output standard for a service (65% pass rate in school-leaving examinations) and then estimate the resources needed to achieve that goal. 9 The intention was to apply this approach to all services that are constitutionally required to be delivered by provincial governments. The FFC (2014 and 2017) 10 made further submissions on the allocation formula and argued that if the formula were to be revised in the long term, a conditional block grant for education and health should be provided to ensure that provinces meet their constitutional obligations with regard to these key services. Equal Education (2017), 11 one of the leading civil society advocacy groups, makes a strong case for the incorporation of an explicit rural and poverty element in the education formula of the provincial equitable share. Using Statistics South Africa s demarcation of geographic types, Equal Education computes population weighted schoolage distributions that account for rurality and consequently allocates substantially more resources to rural provinces (Eastern Cape, KwaZulu-Natal and Limpopo) and takes away resources from the more urban provinces (Gauteng and the Western Cape). It is understandable that the National Treasury has taken a cautious approach to reviewing parts of the allocation formula because of the disruptive effect this may have on provincial revenue. This approach is likely to be continued and we should not expect large swings in provincial revenue either way. However, what is clear is that the allocation formula needs to change so that it provides an improved understanding of what it means to deliver services to poor and vulnerable communities. The education formula needs to find a balance between recognising that rural areas have implicit cost factors that increase financing costs, while recognising that urbanisation trends are irreversible and urban poverty is as real as rural poverty. Takeaways: Reductions in the baseline funding for provinces that were motivated by poor spending at the subnational level should be complemented with capacity-building interventions aimed at improving the effectiveness of spending. Furthermore, reductions should not be based only on poor spending performance, but constitutional requirements to deliver basic services to poor and vulnerable individuals should be factored into such decisions. Mooted changes to the education component in the allocation formula should consider poverty and other factors of need, but changes need to be negotiated with all relevant stakeholders. 17

18 Key Events in the Budget Calendar National budget process July 2016: National agencies submit their first draft budgets to the National Treasury September 2016: MTEC process concludes: Recommendations tabled to MINCOMBUD October 2016: Tabling of Medium Term Budget Policy Statement October 2016: Preliminary allocation letters issued to departments November 2016: Submission of draft 2017 national budget chapter and database by departments/entities November 2016: Cabinet approved final allocations distributed to departments February 2017: Budget tabled in Parliament. Provincial budget process July 2016: Technical Committee on Finance Lekgotla August 2016: Provincial treasuries submit first draft 2017 Budgets to National Treasury: Estimates of Provincial Revenue and Expenditure and database September 2016: Budget Council and Budget Forum meeting (inter-governmental meeting) October 2016: Tabling of Medium Term Budget Policy Statement October 2016: Preliminary allocation letters issued to provinces equitable share and conditional grant allocations December 2016: Final conditional grant frameworks and allocations submitted to National Treasury by national departments End Jan/Early Final allocation letters issued to provinces Feb 2017: End Feb/Early Provincial 2017 Budgets tabled at provincial legislatures. March 2017: 18

19 Endnotes 1 The poverty measure used to determine that 51 per cent of children are poor is the lower bound poverty line (which is ZAR647 per person per month). The number would be much higher if the upper bound poverty line (ZAR992 per person per month) is used. 2 Data for the textbox were drawn from the United Nations Development Programme (UNDP), Human Development Report 2016: Human Development for Everyone. New York, UNDP, 2016 < [accessed 15 August 2017]. Poverty data were drawn from Statistics South Africa, Poverty trends in South Africa: an examination of absolute poverty between 2006 and Pretoria, Government Printers, Population data were drawn from the official reports of the General Household Survey HIV prevalence rates were drawn from Statistics South Africa, Mid-year population estimates Pretoria, Government Printers, The MTSF report was downloaded from: < za/sites/ [accessed 18 July 2017]; The Presidency, The National Development Plan 2030: Our future make it work. Pretoria, Government Printers, OECD, OECD Economic Surveys South Africa. Paris, OCED Publishing, Legally, these constitutional provisions find expression in the annual Division of Revenue Bill/Act that accompanies the main budget documentation at the start of the new financial cycle. The Division of Revenue Bill/Act is particularly helpful in listing in detail the conditions under which (conditional) grant funding should be used, including reporting requirements and the duration or life-span of the grant. 6 UNICEF, National political economy analysis and fiscal space profiles of countries in Eastern and Southern Africa: fiscal space analysis-south Africa. Rotterdam, UNICEF, Rao, MG and Khumalo, B. Sharing the Cake: A Review of the Provincial Equitable Share Formula in South Africa: <06.2%20 Rao%20G_Khumalo%20B_Sharing%20the%20cake%20 (32pp)%20(1).pdf> [accessed 09 August 2017]. 8 The Financial and Fiscal Commission (FFC). A costed norms approach for the Division of Revenue. Midrand, FFC. 9 The Financial and Fiscal Commission (FFC), Submission for the 2018/19 Division of Revenue. Midrand, FFC and Submission for the 2010/11 Division of Revenue. 10 Equal Education (EE). Adjusting the equitable share formula to improve opportunities for equal education across rural and urban areas. Cape Town, Equal Education. UNICEF/Schermbrucker 19

20 United Nations Children s Fund Equity House 659 Pienaar Street Brooklyn Pretoria

South Africa. UNICEF/Hearfield

South Africa. UNICEF/Hearfield South Africa UNICEF/Hearfield Social development BUDGET SOUTH AFRICA 217/218 1 .2 % Real average annual rate projected growth of DSD budgets UNICEF/Bart de Ruigh Preface This budget brief is one of four

More information

BUDGET SOUTH AFRICAN BUDGET: THE MACRO PICTURE. Key messages

BUDGET SOUTH AFRICAN BUDGET: THE MACRO PICTURE. Key messages BUDGET CHILDREN AND THE SOUTH AFRICAN BUDGET: THE MACRO PICTURE UNICEF/Pirozzi Key messages The nearly 2 million children in South Africa account for more than a third of the country s population. South

More information

South Africa. UNICEF South Africa

South Africa. UNICEF South Africa South Africa UNICEF South Africa Education BUDGET SOUTH AFRICA 2017/2018 1 17% Budget for school children remains at 17% of total government expenditure Preface This budget brief is one of four that explore

More information

2018/19. Social Development Budget Brief South Africa

2018/19. Social Development Budget Brief South Africa Social Development Budget Brief South Africa Contents Social Development Budget Brief SOUTH AFRICA Acronyms 1 Preface 2 Key Messages and Recommendations 2 SECTION 1. Introduction 3 Governance and National

More information

Hands-on. Learning Brief 45. Learning from our implementing partners. University of Cape Town

Hands-on. Learning Brief 45. Learning from our implementing partners. University of Cape Town EARLY CHILDHOOD DEVELOPMENT Hands-on Learning from our implementing partners University of Cape Town Are children s rights prioritised at a time of budget cuts? Assessing the adequacy of the 2013/14 social

More information

Children and South Africa s Budget

Children and South Africa s Budget Children and South Africa s Budget Children and South Africa s Budget 1. Macro context 2. Health 3. Education 4. Social Development 1. MACRO CONTEXT South Africa Key message 1 The nearly 20 million children

More information

REPORT OF THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE 2014/15 FINANCIAL YEAR, DATED 14 OCTOBER 2015

REPORT OF THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE 2014/15 FINANCIAL YEAR, DATED 14 OCTOBER 2015 REPORT OF THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE 2014/15 FINANCIAL YEAR, DATED 14 OCTOBER 2015 1. Introduction and Background The Select Committee on Finance

More information

DIVISION OF REVENUE TO PROVINCES AND LOCAL GOVERNMENT

DIVISION OF REVENUE TO PROVINCES AND LOCAL GOVERNMENT DIVISION OF REVENUE TO PROVINCES AND LOCAL GOVERNMENT Presentation to Select Committee on Appropriations Presenter: Wendy Fanoe National Treasury 15 July 2014 Outline Outline of the key steps in the national

More information

Submission on the Function Shift of Further Education and Training (FET)

Submission on the Function Shift of Further Education and Training (FET) Submission on the Function Shift of Further Education and Training (FET) For an Equitable Sharing of National Revenue. 3 DECEMBER 2013 Financial and Fiscal Commission Montrose Place (2 nd Floor), Bekker

More information

LESOTHO SOCIAL ASSISTANCE BUDGET BRIEF 1 NOVEMBER 2017

LESOTHO SOCIAL ASSISTANCE BUDGET BRIEF 1 NOVEMBER 2017 Photography: UNICEF Lesotho/2017/Schermbrucker LESOTHO SOCIAL ASSISTANCE BUDGET BRIEF 1 NOVEMBER 2017 This budget brief is one of four that explores the extent to which the national budget addresses the

More information

Processes for Financing Public Basic Education in South Africa

Processes for Financing Public Basic Education in South Africa Processes for Financing Public Basic Education in South Africa Final January 2017 Research commissioned by the International Budget Partnership 1 Table of Contents 1 INTRODUCTION... 3 2 RELEVANT LEGISLATION...

More information

FUNDING BASIC EDUCATION CHAPTER 2. Daniel McLaren

FUNDING BASIC EDUCATION CHAPTER 2. Daniel McLaren CHAPTER 2 FUNDING BASIC EDUCATION Daniel McLaren 36 Basic Education Rights Handbook Education Rights in South Africa Chapter 2: Funding Basic Education Basic Education Rights Handbook Education Rights

More information

Poverty: Analysis of the NIDS Wave 1 Dataset

Poverty: Analysis of the NIDS Wave 1 Dataset Poverty: Analysis of the NIDS Wave 1 Dataset Discussion Paper no. 13 Jonathan Argent Graduate Student, University of Cape Town jtargent@gmail.com Arden Finn Graduate student, University of Cape Town ardenfinn@gmail.com

More information

Business Partners Limited SME Confidence Index

Business Partners Limited SME Confidence Index Business Partners Limited SME Confidence Index Fourth Quarter of 2017: October December Issued February 2018 1 RATIONALE FOR THE BUSINESS PARTNERS LIMITED SME CONFIDENCE INDEX SMEs are often punted as

More information

Presentation to the Egyptian Ministry of Planning, Monitoring, and Administrative Reform (MPMAR) Study Tour: South Africa.

Presentation to the Egyptian Ministry of Planning, Monitoring, and Administrative Reform (MPMAR) Study Tour: South Africa. Presentation to the Egyptian Ministry of Planning, Monitoring, and Administrative Reform (MPMAR) Study Tour: South Africa April 13 2016 STRUCTURE OF THE PRESENTATION 1. Background to South Africa s Intergovernmental

More information

Housing backlog: Protests and the demand for Housing in South Africa BY ESTERI MSINDO PSAM

Housing backlog: Protests and the demand for Housing in South Africa BY ESTERI MSINDO PSAM Housing backlog: Protests and the demand for Housing in South Africa BY ESTERI MSINDO PSAM Housing delivery law and regulation Section 26 of the constitution stipulates that everyone has the right to adequate

More information

An analysis of training expenditure in the Public Service sector

An analysis of training expenditure in the Public Service sector March 2018 An analysis of training expenditure in the Public Service sector 1. Background and Introduction The Public Service sector in South Africa, comprised of the national and provincial government

More information

ADDRESSING PUBLIC PRIVATE SECTOR INEQUALITIES PROFESSOR EMERITUS YOSUF VERIAVA

ADDRESSING PUBLIC PRIVATE SECTOR INEQUALITIES PROFESSOR EMERITUS YOSUF VERIAVA ADDRESSING PUBLIC PRIVATE SECTOR INEQUALITIES PROFESSOR EMERITUS YOSUF VERIAVA HEALTH INEQUALITY AND INEQUITY Disparity: Is there a difference in the health status rates between population groups? Inequality:

More information

Labour. Labour market dynamics in South Africa, statistics STATS SA STATISTICS SOUTH AFRICA

Labour. Labour market dynamics in South Africa, statistics STATS SA STATISTICS SOUTH AFRICA Labour statistics Labour market dynamics in South Africa, 2017 STATS SA STATISTICS SOUTH AFRICA Labour Market Dynamics in South Africa 2017 Report No. 02-11-02 (2017) Risenga Maluleke Statistician-General

More information

REVIEW OF THE LOCAL GOVERNMENT EQUITABLE SHARE FORMULA

REVIEW OF THE LOCAL GOVERNMENT EQUITABLE SHARE FORMULA T In partnership with: REVIEW OF THE LOCAL GOVERNMENT EQUITABLE SHARE FORMULA Parliament 19 February 2013 INTRODUCING THE NEW FORMULA Structure of the presentation 2 Background to the formula and review

More information

Sharing the Cake: A Review of Provincial Equitable Share Formula in South Africa

Sharing the Cake: A Review of Provincial Equitable Share Formula in South Africa Sharing the Cake: A Review of Provincial Equitable Share Formula in South Africa M. Govinda Rao and Bongani Khumalo The views and opinions expressed in this paper are those of the authors and not the Financial

More information

The status of performance management. Consolidated general report on the national and provincial audit outcomes

The status of performance management. Consolidated general report on the national and provincial audit outcomes 4 The status of performance management 57 4. Annual performance reports Figure 1 provides an overview of audit outcomes on the APRs, the APRs submitted with no material misstatements (red line) and the

More information

LESOTHO EDUCATION BUDGET BRIEF 1 NOVEMBER 2017

LESOTHO EDUCATION BUDGET BRIEF 1 NOVEMBER 2017 Photography: UNICEF Lesotho/2017 LESOTHO EDUCATION BUDGET BRIEF 1 NOVEMBER 2017 This budget brief is one of four that explores the extent to which the national budget addresses the education needs of children

More information

Fiscal Year 2018/19. Lesotho National Budget Brief

Fiscal Year 2018/19. Lesotho National Budget Brief Lesotho National Budget Brief Fiscal Year 2018/19 This budget brief is one of four briefs that explore the extent to which the national budget of the Kingdom of Lesotho addresses the needs of children

More information

SECTION 2: OVERVIEW OF AUDIT OUTCOMES. Consolidated general report on national and provincial audit outcomes for

SECTION 2: OVERVIEW OF AUDIT OUTCOMES. Consolidated general report on national and provincial audit outcomes for SECTION 2: OVERVIEW OF AUDIT OUTCOMES 45 Consolidated general report on national and provincial audit outcomes for 204-5 Figure : Slight improvement in audit outcomes (all auditees) 7% (76) 28% (3) 26%

More information

Equity in Public Sector Health Care Financing and Expenditure in South Africa: An Analysis of Trends between 1995/96 to 2000/01

Equity in Public Sector Health Care Financing and Expenditure in South Africa: An Analysis of Trends between 1995/96 to 2000/01 Equity in Public Sector Health Care Financing and Expenditure in South Africa: An Analysis of Trends between 1995/96 to 2000/01 Technical Report to Chapter 4 of the South African Health Review 1998 Equity

More information

economic growth QUARTERLY DATA SERIES

economic growth QUARTERLY DATA SERIES ISSUE 8 December 2016 PROVINCIAL economic growth QUARTERLY DATA SERIES introduction The Quarterly Economic Review is a statistical release compiled by the Eastern Cape Socio Economic Consultative Council

More information

Education Budget Brief 2016

Education Budget Brief 2016 Education Budget Brief 2016 Public Service Accountability Monitor Eastern Cape, South Africa Zukiswa Kota Budget Brief: Education 2016/17 June 2016 Zukiswa Kota Monitoring and Advocacy Programme Public

More information

ECONOMIC GROWTH PROVINCIAL INTRODUCTION QUARTERLY DATA SERIES

ECONOMIC GROWTH PROVINCIAL INTRODUCTION QUARTERLY DATA SERIES ISSUE 7 OCTOBER 2016 PROVINCIAL QUARTERLY DATA SERIES ECONOMIC GROWTH INTRODUCTION The Quarterly Economic Review is a statistical release compiled by the Eastern Cape Socio Economic Consultative Council

More information

Monitoring the Performance of the South African Labour Market

Monitoring the Performance of the South African Labour Market Monitoring the Performance of the South African Labour Market An overview of the South African labour market from 1 of 2009 to of 2010 August 2010 Contents Recent labour market trends... 2 A brief labour

More information

Performance reports. General report on the national and provincial audit outcomes for

Performance reports. General report on the national and provincial audit outcomes for 8 Performance reports 83 8. Performance reports Performance reports are a key accountability mechanism. In the performance reports, auditees report on whether they achieved the objectives that had been

More information

STRATEGIC PLAN AND BUDGET 2013 TO 2016 MUNICIPAL DEMARCATION BOARD

STRATEGIC PLAN AND BUDGET 2013 TO 2016 MUNICIPAL DEMARCATION BOARD STRATEGIC PLAN AND BUDGET 2013 TO 2016 MUNICIPAL DEMARCATION BOARD BRIEFING TO THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 19 MARCH 2013 DELEGATION Mr LJ Mahlangu Chairperson:

More information

2017/2018 THE NATIONAL BUDGET: PROCESSES AND ALLOCATIONS

2017/2018 THE NATIONAL BUDGET: PROCESSES AND ALLOCATIONS 2017/2018 THE NATIONAL BUDGET: PROCESSES AND ALLOCATIONS This Budget Brief is one in a series of four that examine the extent to which the Namibian Government budgets address the needs of children in Namibia.

More information

Monitoring the Performance of the South African Labour Market

Monitoring the Performance of the South African Labour Market Monitoring the Performance of the South African Labour Market An overview of the South African labour market for the Year ending 2011 5 May 2012 Contents Recent labour market trends... 2 A labour market

More information

BRIEFING BY THE FINANCIAL AND FISCAL COMMISSION ON THE 2018 MEDIUM TERM BUDGET POLICY STATEMENT

BRIEFING BY THE FINANCIAL AND FISCAL COMMISSION ON THE 2018 MEDIUM TERM BUDGET POLICY STATEMENT BRIEFING BY THE FINANCIAL AND FISCAL COMMISSION ON THE 218 MEDIUM TERM BUDGET POLICY STATEMENT Tuesday, 3 th October 218 For an Equitable Sharing of National Revenue BACKGROUND This submission on the 218

More information

budget brief 4 Budget 2009: Still Getting the Balance Right?

budget brief 4 Budget 2009: Still Getting the Balance Right? PIMS budget brief 4 Budget 2009: Still Getting the Balance Right? The PIMS Budget Briefs are brief, non-technical versions of the Budget Papers which provide analysis of significant, topical budgeting

More information

Further ambitious social reforms are being proposed to tackle poverty, growth and inequality problems. The National Health Insurance

Further ambitious social reforms are being proposed to tackle poverty, growth and inequality problems. The National Health Insurance Chapter 2 Inclusive Growth, Development and Fiscal Policy 2.1 Introduction South Africa experienced a long period of economic decline in the last decades of apartheid (1985 1994). In the immediate postapartheid

More information

IMPACT OF GOVERNMENT PROGRAMMES USING ADMINISTRATIVE DATA SETS SOCIAL ASSISTANCE GRANTS

IMPACT OF GOVERNMENT PROGRAMMES USING ADMINISTRATIVE DATA SETS SOCIAL ASSISTANCE GRANTS IMPACT OF GOVERNMENT PROGRAMMES USING ADMINISTRATIVE DATA SETS SOCIAL ASSISTANCE GRANTS Project 6.2 of the Ten Year Review Research Programme Second draft, 19 June 2003 Dr Ingrid Woolard 1 Introduction

More information

The Presidency Department of Performance Monitoring and Evaluation

The Presidency Department of Performance Monitoring and Evaluation The Presidency Department of Performance Monitoring and Evaluation Briefing to the Standing Committee on Appropriations on the Strategic Plan and Annual Performance Plan for the 2012/13 financial year

More information

Provincial Budgeting and Financial Management

Provincial Budgeting and Financial Management Provincial Budgeting and Financial Management Presentation to Select Committee on Appropriations Presenter: Edgar Sishi National Treasury 15 July 2014 INTRODUCTION Provincial functions are assigned by

More information

A comprehensive view of the state of the residential rental market in South Africa Q JAN - MAR

A comprehensive view of the state of the residential rental market in South Africa Q JAN - MAR A comprehensive view of the state of the residential rental market in South Africa JAN - MAR PayProp Rental Index Quarterly The current downward trend in the South African economy appears to be taking

More information

FISCAL OVERSIGHT OPPORTUNITIES AND

FISCAL OVERSIGHT OPPORTUNITIES AND FISCAL OVERSIGHT OPPORTUNITIES AND CHALLENGES FOR 2017 AND BEYOND A STRATEGIC PLANNING REVIEW SESSION OF THE STANDING COMMITTEE ON APPROPRIATIONS 04 MAY 2017 PRESENTATION OUTLINE 1. Background 2. Impact

More information

Ensuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements

Ensuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements Ensuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements Jackie Manche, Chief Executive Officer, Independent

More information

Treasury Guidelines Preparation of Expenditure Estimates for the 2010 Medium Term Expenditure Framework

Treasury Guidelines Preparation of Expenditure Estimates for the 2010 Medium Term Expenditure Framework Treasury Guidelines Preparation of Expenditure Estimates for the 2010 Medium Term Expenditure Framework National Treasury May 2009 The document is available on the internet at: www.treasury.gov.za/publications/guidelines

More information

Presentation of the Strategic Plan and APP April 2015

Presentation of the Strategic Plan and APP April 2015 The Presidency: Department of Planning, Monitoring and Evaluation Presentation of the Strategic Plan 2015-2020 and APP 2015-2016 15 April 2015 Structure of the Presentation 1. Background to the DPME 2.

More information

Financial and Fiscal Commission

Financial and Fiscal Commission Financial and Fiscal Commission Recommendations and Comments The Allocation of Financial Resources to National, Provincial and Local Governments for the 1998/99 Fiscal Year, Submitted in terms of Section

More information

Analysis of the 2009/10 budgets of the nine provincial departments of Social Development: Are the budgets adequate to implement the Children s Act?

Analysis of the 2009/10 budgets of the nine provincial departments of Social Development: Are the budgets adequate to implement the Children s Act? 28 May 2009 Analysis of the 2009/10 budgets of the nine provincial departments of Social Development: Are the budgets adequate to implement the Children s Act? Debbie Budlender 1 and Paula Proudlock 2

More information

Balancing the NHI funding requirements with the economic capacity of South Africa. NHI Colloquium 1 June 2016 Presenter: Dondo Mogajane

Balancing the NHI funding requirements with the economic capacity of South Africa. NHI Colloquium 1 June 2016 Presenter: Dondo Mogajane Balancing the NHI funding requirements with the economic capacity of South Africa NHI Colloquium 1 June 2016 Presenter: Dondo Mogajane Tough choices in difficult times South Africa faces exceptionally

More information

Monitoring the Performance of the South African Labour Market

Monitoring the Performance of the South African Labour Market Monitoring the Performance of the South African Labour Market An overview of the South African labour market from 3 of 2010 to of 2011 September 2011 Contents Recent labour market trends... 2 A brief labour

More information

PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES DPW STRATEGIC PLAN AND BUDGET FOR 2012/13 15 MAY 2012

PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES DPW STRATEGIC PLAN AND BUDGET FOR 2012/13 15 MAY 2012 PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES DPW STRATEGIC PLAN AND BUDGET FOR 2012/13 15 MAY 2012 TABLE OF CONTENTS MINISTER S FOREWORD PART A: STRATEGIC OVERVIEW INTRODUCTION AND STRATEGIC

More information

CLIMATE FINANCE OPPORTUNITIES FOR ENHANCED LOCAL ACTION

CLIMATE FINANCE OPPORTUNITIES FOR ENHANCED LOCAL ACTION CLIMATE FINANCE OPPORTUNITIES FOR ENHANCED LOCAL ACTION V-LED AFRICA WORKSHOP: LOCALISING CLIMATE FINANCE AND ACTION 23-25 APRIL 2018, IRENE, SOUTH AFRICA 1 CC expenditure will absorb ~ 70% of domestic

More information

THE SUSTAINABLE DEVELOPMENT GOALS AND SOCIAL PROTECTION

THE SUSTAINABLE DEVELOPMENT GOALS AND SOCIAL PROTECTION THE SUSTAINABLE DEVELOPMENT GOALS AND SOCIAL PROTECTION Ms Nelisiwe Vilakazi Acting Director General- Ministry of Social Development REPUBLIC OF SOUTH AFRICA Global Practitioners Learning Event Oaxaca,

More information

REPORT OF THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE ON BUDGET VOTE 37: DEPARTMENT OF ARTS AND CULTURE, DATED 14 MAY 2015

REPORT OF THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE ON BUDGET VOTE 37: DEPARTMENT OF ARTS AND CULTURE, DATED 14 MAY 2015 REPORT OF THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE ON BUDGET VOTE 37: DEPARTMENT OF ARTS AND CULTURE, DATED 14 MAY 2015 The Portfolio Committee on Arts and Culture, having considered the 2015/16 budget

More information

Women and Men in the Informal Economy: A Statistical Brief

Women and Men in the Informal Economy: A Statistical Brief Women and Men in the Informal Economy: A Statistical Brief Florence Bonnet, Joann Vanek and Martha Chen January 2019 Women and Men in the Informal Economy: A Statistical Brief Publication date: January,

More information

Rwanda. Till Muellenmeister. National Budget Brief

Rwanda. Till Muellenmeister. National Budget Brief Rwanda Till Muellenmeister National Budget Brief Investing in children in Rwanda 217/218 National Budget Brief: Investing in children in Rwanda 217/218 United Nations Children s Fund (UNICEF) Rwanda November

More information

Rural Health Advocacy Project Submission on the Medium Term Budget Policy Statement 2015: More bad news for human resources for health (Version 1)

Rural Health Advocacy Project Submission on the Medium Term Budget Policy Statement 2015: More bad news for human resources for health (Version 1) Rural Health Advocacy Project Submission on the Medium Term Budget Policy Statement 2015: More bad news for human resources for health (Version 1) For additional information or comment on this submission

More information

South African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank

South African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 23 November 2017 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the

More information

Focus on Household and Economic Statistics. Insights from Stats SA publications. Nthambeleni Mukwevho Stats SA

Focus on Household and Economic Statistics. Insights from Stats SA publications. Nthambeleni Mukwevho Stats SA Focus on Household and Economic Statistics Insights from Stats SA publications Nthambeleni Mukwevho Stats SA South African Population Results from CS 2016 Source: CS 2016 EC Household Results from CS 2016

More information

BOTSWANA BUDGET BRIEF 2018 Health

BOTSWANA BUDGET BRIEF 2018 Health BOTSWANA BUDGET BRIEF 2018 Health Highlights Botswana s National Health Policy and Integrated Health Service Plan for 20102020 (IHSP) are child-sensitive and include specific commitments to reducing infant,

More information

FISCAL SPACE ANALYSIS IN THE HIV/AIDS SECTOR IN BURKINA FASO. Case study

FISCAL SPACE ANALYSIS IN THE HIV/AIDS SECTOR IN BURKINA FASO. Case study FISCAL SPACE ANALYSIS IN THE HIV/AIDS SECTOR IN BURKINA FASO Fiscal space analysis in the HIV/AIDS Sector in Burkina Faso Contents List of figures... 2 Acronyms and abbreviations... 3 1. Introduction...

More information

1. INTRODUCTION 2. OVERVIEW OF POLICY PRIORITIES FOR 2016/17

1. INTRODUCTION 2. OVERVIEW OF POLICY PRIORITIES FOR 2016/17 REPORT OF THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE ANNUAL PERFORMANCE PLAN AND BUDGET VOTE 4 OF THE DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

More information

Country Report of Yemen for the regional MDG project

Country Report of Yemen for the regional MDG project Country Report of Yemen for the regional MDG project 1- Introduction - Population is about 21 Million. - Per Capita GDP is $ 861 for 2006. - The country is ranked 151 on the HDI index. - Population growth

More information

SUMMARY OF THE CHILDREN S BILL COSTING

SUMMARY OF THE CHILDREN S BILL COSTING Centre for Actuarial Research (CARe) SUMMARY OF THE CHILDREN S BILL COSTING Written by Debbie Budlender Children s Institute and Centre for Actuarial Research, University of Cape Town November 2006 Why

More information

Long-Term Fiscal External Panel

Long-Term Fiscal External Panel Long-Term Fiscal External Panel Summary: Session One Fiscal Framework and Projections 30 August 2012 (9:30am-3:30pm), Victoria Business School, Level 12 Rutherford House The first session of the Long-Term

More information

Salary Survey. The Association of South African Quantity Surveyors (ASAQS) March 2017 (Published in October 2017) South African Construction Industry

Salary Survey. The Association of South African Quantity Surveyors (ASAQS) March 2017 (Published in October 2017) South African Construction Industry The Association of South African Quantity Surveyors (ASAQS) Salary Survey March 2017 (Published in October 2017) South African Construction Industry Business Information Services www.industryinsight.co.za

More information

Rwanda. Till Muellenmeister. Health Budget Brief

Rwanda. Till Muellenmeister. Health Budget Brief Rwanda Till Muellenmeister Health Budget Brief Investing in children s health in Rwanda 217/218 Health Budget Brief: Investing in children s health in Rwanda 217/218 United Nations Children s Fund (UNICEF)

More information

1. Introduction 2. DOMESTIC ECONOMIC DEVELOPMENTS. 2.1 Economic performance in South Africa ISBN: SECOND QUARTER 2013

1. Introduction 2. DOMESTIC ECONOMIC DEVELOPMENTS. 2.1 Economic performance in South Africa ISBN: SECOND QUARTER 2013 November 2013 ISBN: 978-1-920493-99-8 SECOND QUARTER 2013 1. Introduction The Quarterly Economic Update for the second quarter of 2013 (2Q2013) has been expanded and contains a range of new indicators.

More information

Universe and Sample. Page 26. Universe. Population Table 1 Sub-populations excluded

Universe and Sample. Page 26. Universe. Population Table 1 Sub-populations excluded Universe and Sample Universe The universe from which the SAARF AMPS 2008 (and previous years) sample was drawn, comprised adults aged 16 years or older resident in private households, or hostels, residential

More information

IMPROVING PUBLIC FINANCING FOR NUTRITION SECTOR IN TANZANIA

IMPROVING PUBLIC FINANCING FOR NUTRITION SECTOR IN TANZANIA INN VEX UNITED REPUBLIC OF TANZANIA MINISTRY OF FINANCE IMPROVING PUBLIC FINANCING FOR NUTRITION SECTOR IN TANZANIA Policy Brief APRIL 2014 1 Introduction and background Malnutrition in Tanzania remains

More information

Submission on Draft Money Bills Amendment Procedures and Related Matters Bill

Submission on Draft Money Bills Amendment Procedures and Related Matters Bill Financial and Fiscal Commission Submission on Draft Money Bills Amendment Procedures and Related Matters Bill 2008 For an Equitable Sharing of National Revenue 1. Introduction 1.0.1 The Financial and Fiscal

More information

Strategic Plan 2012/17, Annual Performance Plan and Budget 2012/13

Strategic Plan 2012/17, Annual Performance Plan and Budget 2012/13 Strategic Plan 2012/17 and Annual Performance Plan 2012/13 Strategic Plan 2012/17, Annual Performance Plan and Budget 2012/13 INDEPENDENT POLICE INVESTIGATIVE DIRECTORATE (IPID) Monday, 16 April 2012 BRIEFING

More information

Universal Social Protection

Universal Social Protection Universal Social Protection Universal pensions in South Africa Older Persons Grant South Africa is ranked as an upper-middle income country but characterized by high poverty incidence and inequality among

More information

SOCIAL PROTECTION BUDGET SWAZILAND 2017/2018 HEADLINE MESSAGES. Swaziland

SOCIAL PROTECTION BUDGET SWAZILAND 2017/2018 HEADLINE MESSAGES. Swaziland Swaziland SOCIAL PROTECTION BUDGET SWAZILAND 217/218 Schermbrucker/ UNICEF Swaziland 217 HEADLINE MESSAGES Sixty-three per cent of Swazis lives below the national poverty line. A total of 7% of children

More information

Table 1 sets out national accounts information from 1994 to 2001 and includes the consumer price index and the population for these years.

Table 1 sets out national accounts information from 1994 to 2001 and includes the consumer price index and the population for these years. WHAT HAPPENED TO THE DISTRIBUTION OF INCOME IN SOUTH AFRICA BETWEEN 1995 AND 2001? Charles Simkins University of the Witwatersrand 22 November 2004 He read each wound, each weakness clear; And struck his

More information

The Provision and Funding of Child Welfare Services in South Africa

The Provision and Funding of Child Welfare Services in South Africa The Provision and Funding of Child Welfare Services in South Africa For an Equitable Sharing of National Revenue For an Equitable Sharing of National Revenue The Provision and Funding of Child Welfare

More information

A new national consensus and a new commitment to deliver were necessary to address the triple challenges of poverty, unemployment and inequality.

A new national consensus and a new commitment to deliver were necessary to address the triple challenges of poverty, unemployment and inequality. Budget 2017 Introduction In delivering Budget 2017 in parliament, the finance minister, Pravin Gordhan, emphasised that South Africa was at a conjuncture which requires the wisdom of our elders to help

More information

Creating South Africa s leading financial services institution

Creating South Africa s leading financial services institution Creating South Africa s leading financial services institution - Slide #1 - Johan van Zyl, CEO Sanlam Johan van Zyl, CEO Sanlam Unlocking value for shareholders - Slide #2 - Transaction based on Transaction

More information

Portfolio Committee on Energy

Portfolio Committee on Energy Portfolio Committee on Energy Briefing Integrated National Electrification Programme (INEP) 26 August 2014 Context & Purpose Previous briefings to PC on INEP DoE in September 2013 Salga and DoE in February

More information

Monitoring the Performance of the South African Labour Market

Monitoring the Performance of the South African Labour Market Monitoring the Performance of the South African Labour Market An overview of the South African labour market for the Year Ending 2016 14 July 2016 Contents Recent labour market trends... 2 A labour market

More information

Rwanda. UNICEF/Till Muellenmeister. Health Budget Brief

Rwanda. UNICEF/Till Muellenmeister. Health Budget Brief Rwanda UNICEF/Till Muellenmeister Health Budget Brief Investing in children s health in Rwanda 217/218 Health Budget Brief: Investing in children s health in Rwanda 217/218 United Nations Children s Fund

More information

BOTSWANA BUDGET BRIEF 2018

BOTSWANA BUDGET BRIEF 2018 BOTSWANA BUDGET BRIEF 2018 National Highlights Population projections indicate that the window for Botswana to take advantage of the demographic dividend is nearly closed. The relatively smaller labour

More information

South African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank

South African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 20 November 2014 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the

More information

HONDURAS. 1. General trends

HONDURAS. 1. General trends Economic Survey of Latin America and the Caribbean 2016 1 HONDURAS 1. General trends Economic growth in Honduras picked up in 2015, reaching 3.6%, compared with 3.1% in 2014. This performance was mainly

More information

Expenditure Tracking Report, December Public Service Accountability Monitor. Siyabulela Fobosi

Expenditure Tracking Report, December Public Service Accountability Monitor. Siyabulela Fobosi Department of Education Eastern Cape, South Africa Expenditure Tracking Report, December 2017 Public Service Accountability Monitor Siyabulela Fobosi Expenditure Tracking Report: Education 2016/17 December

More information

GLOBAL EMPLOYMENT TRENDS 2014

GLOBAL EMPLOYMENT TRENDS 2014 Executive summary GLOBAL EMPLOYMENT TRENDS 2014 006.65 0.887983 +1.922523006.62-0.657987 +1.987523006.82-006.65 +1.987523006.60 +1.0075230.887984 +1.987523006.64 0.887985 0.327987 +1.987523006.59-0.807987

More information

LRS INFLATION MONITOR JANUARY 2015

LRS INFLATION MONITOR JANUARY 2015 LRS INFLATION MONITOR JANUARY 201 1 CPI SLOWED SLIGHTLY TO.% IN JANUARY 201 KEY FINDINGS Inflation measures how much more expensive a set of goods and services has become over a certain period, usually

More information

Public Employment Programmes: Are They Working? Rudi Dicks 5 December 2016

Public Employment Programmes: Are They Working? Rudi Dicks 5 December 2016 Public Employment Programmes: Are They Working? Rudi Dicks 5 December 2016 What did we inherit in 1994 SA economy had been shaped by apartheid policies and by a dependence on mining exports The apartheid

More information

Women in the South African Labour Market

Women in the South African Labour Market Women in the South African Labour Market 1995-2005 Carlene van der Westhuizen Sumayya Goga Morné Oosthuizen Carlene.VanDerWesthuizen@uct.ac.za Development Policy Research Unit DPRU Working Paper 07/118

More information

South African ART policies between 2013/ /15: An analysis of ARV Expenditure

South African ART policies between 2013/ /15: An analysis of ARV Expenditure South African ART policies between 2013/14 2014/15: An analysis of ARV Expenditure Gavin Surgey Teresa Guthrie 31 March 2015 DRAFT [Do not quote without prior permission] Background Over 2.5m people on

More information

Children, the PRSP and public expenditure in Sierra Leone

Children, the PRSP and public expenditure in Sierra Leone Briefing Paper Strengthening Social Protection for Children inequality reduction of poverty social protection February 2009 reaching the MDGs strategy social exclusion Social Policies security social protection

More information

Income and Non-Income Inequality in Post- Apartheid South Africa: What are the Drivers and Possible Policy Interventions?

Income and Non-Income Inequality in Post- Apartheid South Africa: What are the Drivers and Possible Policy Interventions? Income and Non-Income Inequality in Post- Apartheid South Africa: What are the Drivers and Possible Policy Interventions? Haroon Bhorat Carlene van der Westhuizen Toughedah Jacobs Haroon.Bhorat@uct.ac.za

More information

Quarterly Labour Force Survey Q1:2018

Quarterly Labour Force Survey Q1:2018 Quarterly Labour Force Survey Q1:2018 Faizel Mohammed Stats SA discouraged work seekers The labour market Q1:2018 37,7 million People of working age in South Africa (15 64 year olds) Labour force 22,4

More information

Post subsidies in provincial Departments of Social Development. Report prepared by Debbie Budlender

Post subsidies in provincial Departments of Social Development. Report prepared by Debbie Budlender Post subsidies in provincial Departments of Social Development Report prepared by Debbie Budlender April 2017 1 About this study: The care work project was initiated in 2016 by the Shukumisa Campaign in

More information

KwaZulu-Natal Provincial Treasury

KwaZulu-Natal Provincial Treasury KwaZulu-Natal Provincial Treasury UTHUNGULU DISTRICT: SOCIO-ECONOMIC PROFILE 8.1 Demographics The KwaZulu-Natal Province has both, a growing and maturing population, presenting opportunities and challenges

More information

Rwanda. UNICEF/Gonzalo Bell. Education Budget Brief

Rwanda. UNICEF/Gonzalo Bell. Education Budget Brief Rwanda Education Budget Brief Investing in child education in Rwanda 217/218 Education Budget Brief: Investing in child education in Rwanda 217/218 United Nations Children s Fund (UNICEF) Rwanda November

More information

In South Africa, there is a high priority for regular,

In South Africa, there is a high priority for regular, Applied Development Research Solutions KEY QUESTIONS SKILLS PLANNING SERIES OCTOBER 2016 If the economy follows a low, moderate or high growth path over the next 10 years, what will be the likely impact

More information

Expanded Public Works Programme

Expanded Public Works Programme Expanded Public Works Programme (EPWP) Overview of EPWP Phase 2 Second Economy Strategy 29 September 2008 Sector Analysis: Infrastructure Meeting job targets but jobs are too short Use of labour-intensive

More information

Design & Planning of EPWP Phase II

Design & Planning of EPWP Phase II Design & Planning of EPWP Phase II Briefing and Key Decisions 10 November 2008 EPWP 2 GOAL To create 4,5 million (short and ongoing) work opportunities for poor and unemployed people in South Africa so

More information

Eastern Cape Department of Human Settlements Strategic Plan Evaluation 2015/2016

Eastern Cape Department of Human Settlements Strategic Plan Evaluation 2015/2016 Eastern Cape Department of Human Settlements Strategic Plan Evaluation 2015/2016 November 2015 by Thoko Sipungu Monitoring and Advocacy Program, Public Service Accountability Monitor For more information

More information

IMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA

IMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA IMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA FISCAL TRANSPARENCY AND ACCOUNTABILITY MEETING - MOSCOW, RUSSIA Presented by: Dr Kay Brown Chief Director, Expenditure Planning 29 May 2014 Presentation outline

More information