Budget Information Service

1
Budget Information Service
Response to the Medium-Term Budget
Policy Statement 2003
The Budget once again facilitates service
delivery to poor people, but there is a long road
ahead in realising socio-economic rights.
2
The focus of this presentation
1. Importance of using the Budget as a tool for
poverty reduction in the context of unemployment,
revenue and growth trends in South Africa
Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
3
The focus of this presentation
1. Importance of using the Budget as a tool for
poverty reduction in the context of unemployment,
revenue and growth trends in South Africa 2. How
the MTBPS 2003 contributes to poverty reduction
Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
4
The focus of this presentation
1. Importance of using the Budget as a tool for
poverty reduction in the context of unemployment,
revenue and growth trends in South Africa 2. How
the MTBPS 2003 contributes to poverty
reduction 3. The challenges arising from the
MTBPS 2003
Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
5
Section 1 Importance of using the Budget as a
tool for poverty reduction in current context

• MTBPS 2003 presented in the context of the
• continued poverty in South Africa

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
6
Section 1 Importance of using the Budget as a
tool for poverty reduction in current context

• MTBPS 2003 presented in the context of the
• continued poverty in South Africa
• Limited prospects for markets to reduce
• poverty via private sector
  employment-creation

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 1 Importance of using the Budget as a
tool for poverty reduction in current context

• MTBPS 2003 presented in the context of the
• continued poverty in South Africa
• Limited prospects for markets to reduce
• poverty via private sector
  employment-creation
• Raises importance of using the Budget to
• address poverty

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
8
Section 1 Importance of using the Budget as a
tool for poverty reduction in current context

• MTBPS 2003 presented in the context of the
• continued poverty in South Africa
• Limited prospects for markets to reduce
• poverty via private sector
  employment-creation
• Raises importance of using the Budget to
• address poverty
• Revenue position tighter than expected

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
9
Section 2 Pro-poor strengths of MTBPS 2003

• Real increase in non-interest spending in the
• aggregate (including per capita) despite
  smaller envelope

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
10
Section 2 Pro-poor strengths of MTBPS 2003

• Real increase in non-interest spending in the
• aggregate (including per capita) despite
  smaller envelope
• Priority given to service spending in sectors
• important for the poor

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 2 Pro-poor strengths of MTBPS 2003

• Priority given to spending on key poverty
• programmes
• Basic service delivery at municipal level

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
12
Section 2 Pro-poor strengths of MTBPS 2003

• Priority given to spending on key poverty
• programmes
• Basic service delivery at municipal level
• Expanded Public Works (EPW) programme

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
13
Section 2 Pro-poor strengths of MTBPS 2003

• Priority given to spending on key poverty
• programmes
• Basic service delivery at municipal level
• Expanded Public Works (EPW) programme
• Extended Child Support Grant (CSG) and other
• social assistance programmes

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
14
Section 2 Pro-poor strengths of MTBPS 2003

• Priority given to spending on key poverty
• programmes
• Basic service delivery at municipal level
• Expanded Public Works (EPW) programme
• Extended Child Support Grant (CSG) and other
• social assistance programmes
• HIV/AIDS activities introduction of ARV
  treatment
• programme

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 2 Pro-poor strengths of MTBPS 2003

• Priority given to spending on key poverty
• programmes
• Basic service delivery at municipal level
• Expanded Public Works (EPW) programme
• Extended Child Support Grant (CSG) and other
• social assistance programmes
• HIV/AIDS activities introduction of ARV
  treatment
• programme
• Revenue division supports prioritisation of the
  poor

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
16
Section 3 Challenges arising from the MTBPS 2003

• Challenges and recommendations related to
• HIV/AIDS spending
• Ensuring that funds allocated via provincial
  equitable share are indeed spent on HIV/AIDS
  activities

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges and recommendations related to
• HIV/AIDS spending
• Ensuring that funds allocated via provincial
  equitable share are indeed spent on HIV/AIDS
  activities
• Building capacity to spend funds allocated to
  HIV/AIDS

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges and recommendations related to
• HIV/AIDS spending
• Ensuring that funds allocated via provincial
  equitable share are indeed spent on HIV/AIDS
  activities
• Building capacity to spend funds allocated to
  HIV/AIDS
• More effective communication channels

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges and recommendations related to
• HIV/AIDS spending
• Ensuring that funds allocated via provincial
  equitable share are indeed spent on HIV/AIDS
  activities
• Building capacity to spend funds allocated to
  HIV/AIDS
• More effective communication channels
• Improved tracking and monitoring

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges relating to spending of funds
  allocated to basic services
• Conflicting approaches to reforms in
• inter-governmental fiscal relations

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges relating to spending of funds
  allocated to basic services
• Conflicting approaches to reforms in
• inter-governmental fiscal relations
• Municipal shortfalls in service planning
  capacity

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges relating to spending of funds
  allocated to basic services
• Conflicting approaches to reforms in
• inter-governmental fiscal relations
• Municipal shortfalls in service planning
  capacity
• Development of institutional arrangements
• around service delivery

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges associated with the Expanded Public
  Works (EPW) programme
• Effective co-ordination of the programme
  across
• sectors and departments

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges associated with the Expanded Public
  Works (EPW) programme
• Effective co-ordination of the programme
  across
• sectors and departments
• Ensuring the spending of funds allocated to
• provinces and local government

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges associated with the Expanded Public
  Works (EPW) programme
• Effective co-ordination of the programme
  across
• sectors and departments
• Ensuring the spending of funds allocated to
• provinces and local government
• Effective programme monitoring and evaluation
• systems

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
26
Section 3 Challenges arising from the MTBPS 2003

• Challenges associated with the Expanded Public
  Works (EPW) programme
• Effective co-ordination of the programme
  across
• sectors and departments
• Ensuring the spending of funds allocated to
• provinces and local government
• Effective programme monitoring and evaluation
• systems
• Overcoming inflated expectations of what EPW
• can do for the poor

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
27
Section 3 Challenges arising from the MTBPS 2003

• Challenges recommendations relating to the
  rapid roll-out of the CSG programme
• Differential provincial performance and capacity

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges recommendations relating to the
  rapid roll-out of the CSG programme
• Differential provincial performance and capacity
• Need for better data on eligible children

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges recommendations relating to the
  rapid roll-out of the CSG programme
• Differential provincial performance and capacity
• Need for better data on eligible children
• How will National Social Agency assist roll-out?

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges recommendations relating to the
  rapid roll-out of the CSG programme
• Differential provincial performance and capacity
• Need for better data on eligible children
• How will National Social Agency assist roll-out?
• Providing birth certificates and identity books
  to
• promote access in rural areas

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Section 3 Challenges arising from the MTBPS 2003

• Challenges recommendations relating to the
  rapid roll-out of the CSG programme
• Differential provincial performance and capacity
• Need for better data on eligible children
• How will National Social Agency assist roll-out?
• Providing birth certificates and identity books
  to
• promote access in rural areas
• Progress but still the crucial task of further
  expanding social assistance

Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003
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Thank you for your time
Budget Information Service Response to the Joint
Budget Committee in Parliament on the MTBPS 2003