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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 - PowerPoint PPT Presentation
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VOTE 28EDD BUDGET 2011/12
Lwazi Mahlangu
Parliament Research Unit
22 March 2011
1. Contextual Background
2. Policy Priorities for 2011/12
3. Performance and Service Delivery Information
4. Budget Analysis/Expenditure trends
5. Programme Analysis
6. Transfers and subsidies
7. Key Issues for Consideration by Parliament
Overview
• 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
1. Contextual Background
GDP since 2000
Real
GDP PPP per capita
• 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
Challenges
“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
2. Policy Priorities for 2011/12
3. Performance and Service Delivery
Information
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
4. Budget Analysis
Programme
BudgetNominal
Rand change
Real Rand
change
Nominal % change
Real % change
R million 2010/11 2011/12 2012/13 2013/14 2010/11-2011/12 2010/11-2011/12
Administration 45.1 55.0 60.5 63.7 9.9 7.4 21.95 % 16.37 %
Economic Policy Development 18.6 23.3 29.3 30.9 4.7 3.6 25.27 % 19.53 %
Economic Planning and Coordination 374.6 499.9 566.6 599.5 125.3 102.4 33.45 % 27.34 %
Economic Development and Dialogue 11.5 16.3 18.3 19.3 4.8 4.1 41.74 % 35.25 %
TOTAL 449.8 594.5 674.7 713.4 144.7 117.5 32.17 % 26.12 %
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Budget allocations
Administration 45.1 55.0
Economic Policy Development 18.6 23.3
Economic Planning and Coordination 374.6 499.9
Economic Development and Dialogue 11.5 16.3
2010/11 2011/12
Programme as a % of Total Budget
2011/12
Admin = 9.3%
Econ Policy = 3.9%
Econ Plan = 84.1%
Econ Dev = 2.7%
5. Programme Analysis
Medium-term expenditure estimate
R million
Programme 1: AdministrationBudget
2010/11 2011/12 2012/13 2013/14
Ministry 17.4 19.6
Office of the Director General 4.6 5.8
General Management Services 23.1 29.6
TOTAL 45.1 55.0
5.1 Programme 1: Administration
5. Programme Analysis
Medium-term expenditure estimate
R million
Programme 2: Economic Policy Development
Budget
2010/11 2011/12 2012/13 2013/14
Growth Path and Creation of Decent Work 5.2 6.1
Economic Policy 6.6 8.4
BBBEE 3.3 6.1
Second Economy 2.1 2.7
TOTAL 17.2 23.3
5.2 Programme 2: Economic Policy Development
5. Programme Analysis
Medium-term expenditure estimate
R million
Programme 3: Economic Planning and Coordination
Budget
2010/11 2011/12 2012/13 2013/14
Spatial, Sector and Planning 10.5 16.8
Economic Development, Financing and Procurement 3.8 5.2
Investment for Economic Development 162.2 260.1
Competitiveness and Trade for Decent Work 200.4 217.8
Green Economy 0.0 0.0
TOTAL 376.9 499.9
5.3 Programme 3: Economic Planning and Coordination
5. Programme Analysis
Programme 4: Economic Development and Dialogue
Medium-term expenditure estimate
R million
Programme 4: Economic Development and Dialogue
Budget
2010/11 2011/12 2012/13 2013/14
National Social Dialogue and Strategic Frameworks 7.2 11.0
Sector and Workplace Social Dialogue 0.4 0.5
Capacity Building for Economic Development 1.7 2.6
Productivity, Entrepreneurship, Innovation 1.5 2.2
TOTAL 10.8 16.3
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 millionCompetition Tribunal R15.2 million ITAC R69.6 million
TOTAL R464.8 million
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
7. Key Issues for Consideration by Parliament
Thank You