1 / 35

Economic Development Strategic Plan and Budget

Economic Development Strategic Plan and Budget. Presentation to the Select Committee on Economic Development 13 April 2010. Presentation outline. Background Medium Term Strategic Plan Aim and Focus of EDD Programmes, sub-programmes, outputs and activities

sculpepper
Download Presentation

Economic Development Strategic Plan and Budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economic Development Strategic Plan and Budget Presentation to the Select Committee on Economic Development 13 April 2010

  2. Presentation outline • Background • Medium Term Strategic Plan • Aim and Focus of EDD • Programmes, sub-programmes, outputs and activities • A phased approach to implementation • Medium Term Expenditure Framework • Budget per programme and sub-programme • Concluding remarks 2

  3. A new department • EDD established following the announcement of the new Cabinet • President Zuma on 10 May 2009: • “A new Department of Economic Development has been established to focus on economic policy-making.” • President Zuma SONA 3 June 2009: • “The creation of decent work will be at the centre of our economic policies” • President Zuma in Budget Vote speech 24 June 2009: • “The Economic Development portfolio will have a strong domestic focus and will address, amongst others, matters of macro and micro-economic development planning.” 3

  4. Medium Term Strategic Plan 4

  5. Aim of EDD • The aim of the Economic Development Department is to promote economic development through participatory, coherent and coordinated economic policy and planning for the benefit of all South Africans • Coordinate economic development contributions of government departments, state entities and civil society • Contribute to coherence between government objectives and the public sector economic policies and plans • Promote government’s ability to achieve its goals of advancing development with decent work opportunities 5

  6. Focus of EDD • The Department will be responsible for – • Administration (Programme 1) • Developing economic policy with a broad, cross-cutting focus so that macro and micro-economic policy reinforce each other and are both aligned to the electoral mandate (Programme 2); • Economic development planning and will work collegially with other departments to ensure coordination around a programme that places decent work at the centre of government’s economic policies in order to secure better employment outcomes (Programme 3); and • Facilitating social dialogue as a means to address the economic development challenges facing society, build a common national vision and enhance partnerships in the workplace and in the broader society (Programme 4). 6

  7. 7

  8. 8

  9. Economic Policy Development 9

  10. 10

  11. Economic Planning and Coordination sub-programmes 11

  12. Development Finance Institutions 12

  13. Economic Regulatory Bodies 13

  14. 14

  15. Economic Development and Dialogue sub-programmes 15

  16. Provincial dimensions Alignment: National, provincial and local economic development to be better aligned and connected Strong partnerships with provinces Identify provincial dimension of the growth path, to address and transform the spatial inequities of the past Develop support for distressed areas and regions (eg Dimbaza and Doringbaai) Example 1: rural development and E Cape/Limpopo Example 2: green economy and N Cape 16

  17. Provincial dimensions Corridor opportunities across provinces Economic clusters across sectors and regions Identify competitive advantages in each province and linkages between them Build strategic relationships with SALGA and the metropolitan councils Build coherence between national and provincial development agencies Identify social partnership opportunities and social pacts at provincial and local levels 17

  18. Provincial dimensions • Ensure equitable focus by development finance institutions on provinces • Micro-economic policy (eg small business development) need to take the spatial dimension into consideration • Host Policy Platforms in partnership with provinces (example of KZN and rural economic development) • Annual economic development conference to look at spatial dimensions • Create common database on economic development budgets 18

  19. A phased approach Strategic plan sets out the medium term framework for the EDD Requires a phased, step-by-step implementation plan Building an initial capacity in each programme Outputs and activities phased in over the full MTEF period 19

  20. Year 1: 2010/11 • Establish basic capacity in the 4 programmes • Basic policy work and planning in each of the areas • Limited number of sub-programmes created initially and progressively expanded • Key posts will be filled, particularly high-level ones

  21. Targets for 2010/11 21

  22. Year 2: 2011/12 • Expanded operational staff capacity in each of the sub-programmes • Level of policy work and planning significantly enhanced – would cover the full range of areas within the mandate of the department • Stronger focus on areas that have been prioritised

  23. Targets for 2011/12 23

  24. Year 3: 2012/13 Full staff capacity in each of the sub-programmes Full range of policy and planning services set out in the Strategic Plan Ramped-up targets across all programmes and sub-programmes 24

  25. Targets for 2012/13 25

  26. Budget overview: 2010/11 The Budget allocation is R418m, distributed as follows: • R18,2 million for policy development work • R25,8 million for economic planning and coordination • R11,2 million for economic development and dialogue • R44,8 million for administration, the Ministry and capital expenditure • R152 million for small business funding, through transfers to Khula and SAMAF • R102 million for the competition authorities to strengthen their work and • R64 million for trade administration to ITAC. 26

  27. Medium Term Expenditure Framework 27

  28. EDD Budget per programme 28

  29. Programme 1: Administration(per sub-programme) 29

  30. Programme 2: Economic Policy Development (per sub-programme) 30

  31. Programme 3: Economic Planning & Coordination (per sub-programme) 31

  32. Programme 3: Economic Planning & Coordination: Detail of transfers and subsidies 32

  33. Programme 4: Economic Development and Dialogue (per sub-programme) 33

  34. Concluding remarks • Mandate and Framework constitute a bold economic vision • Strategic Plan is the focus of EDD contribution to realise this vision • Will be complemented by operational plans in each programme • The Budget as presented contains expenditure estimates for the medium term including transfer payments for the DFIs and ERBs • Excluding transfers the budget is R100m – R130m – R150m over the medium term • The immediate challenge for EDD will be the building of capacity to implement the department’s programmes and sub-programmes 34

  35. Thank you

More Related