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VOTE 28 EDD BUDGET 2011/12

VOTE 28 EDD BUDGET 2011/12. Lwazi Mahlangu Parliament Research Unit 22 March 2011. Overview. Contextual Background Policy Priorities for 2011/12 Performance and Service Delivery Information Budget Analysis/ Expenditure trends Programme Analysis Transfers and subsidies

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VOTE 28 EDD BUDGET 2011/12

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  1. VOTE 28 EDD BUDGET 2011/12 Lwazi Mahlangu Parliament Research Unit 22 March 2011

  2. Overview • Contextual Background • Policy Priorities for 2011/12 • Performance and Service Delivery Information • Budget Analysis/Expenditure trends • Programme Analysis • Transfers and subsidies • Key Issues for Consideration by Parliament

  3. Moderate positive economic growth (2.9% 2010 vs. – 1.8% 2009) Contributing factors to GDP commodity prices low interest rates faster global growth Key components of GDP (Y) in the 2nd Q2010 (C + I + G + X-M) Consumption = 4.4% Government spending = 6.0% Merchandise Exports = 6.3% Current Account = -3.6% compared to -4%2009 Contextual Background

  4. GDP since 2000 Real GDP PPP per capita

  5. Challenges • South Africa’s growth has not created significant jobs • low ratio of employment to adult (ages15-64) • South Africa (41.4%) compared to African countries - Uganda (83%), Rwanda (80%), Tanzania (78%), & Malawi (78%) • Militancy on the part of trade unions • Impact of labour laws (new amendments) • Lack of development of small businesses • Lack of infrastructure

  6. 2. Policy Priorities for 2011/12 “Unemployment, Inequality, and Poverty” • NGP – 10 year plan in unlocking the employment potential in six key sectors and activities • Infrastructure • Agricultural sector (agric value chain/agro-processing) • The mining value chain • The green economy • Manufacturing sectors • Tourism and certain high-level services

  7. Response to the financial crisis: Of the IDC R6.1 billion, by Dec 2010 R3.6 billion committed and jobs saved or created were 23 322 Of the UIF R2 billion (jobs fund), R219 million has been committed R2.9 billion training layoff scheme, was a collaboration between EDD, DOL, IDC and CCMA As of January 2011, scheme benefited a total of 6351 workers ITAC - revised timeframes for investigations from 12 to 9 months for trade remedies By end of 2009, 750 tons of smuggled clothing and textile ( value of R90 million) were seized by SARS ITAC has responded by increasing the tariffs on 35 items of clothing and textile sector 3. Performance and Service Delivery Information

  8. 4. Budget Analysis

  9. Programme as a % of Total Budget 2011/12 Admin = 9.3% Econ Policy = 3.9% Econ Plan = 84.1% Econ Dev = 2.7%

  10. 5. Programme Analysis 5.1 Programme 1: Administration

  11. 5. Programme Analysis 5.2 Programme 2: Economic Policy Development

  12. 5. Programme Analysis 5.3 Programme 3: Economic Planning and Coordination

  13. 5. Programme Analysis Programme 4: Economic Development and Dialogue

  14. 6. Transfers and subsidies The Development Finance Institutions Khula R128.9 million, SAMAF R90.5 million IDC R34.0 million The regulatory Bodies Competition Commission R126.6 million Competition Tribunal R15.2 million ITAC R69.6 million TOTAL R464.8 million

  15. 7. Key Issues for Consideration by Parliament Since 2011 has been declared a year of job creation Parliament has a role in the following (as an oversight tool): • Number of jobs created/reducing unemployment • GDP growth • Employment ratio or absorption rate • Households in poverty • Distribution of earned income

  16. Thank You

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