With social ills rife, the 2013 national budget, tabled in Parliament today by Finance Minister Pravin Gordhan, aims to address inequalities. Gordhan points out: “Around the world, inequality is fuelling discontent.” Disruption in the mining sector and the structural reduction in mineral exports has, in part, lead to expenditure in the South African economy exceeding the value of production and income by R190 billion. According to Gordhan, “Our trade performance in holding us back.” He says while some of the foundations for faster growth, such as relatively stable inflation and low interest rates, “this is not enough. Much more is needed. In particular, a significant increase in private sector investment and competitiveness is needed in the wider economy.” He says there is a “social solidarity challenge” that cuts across all the imperative of the National Development Plan (NDP), which lies at the centre of the budget. According to him, allocations have been made to increase the employment of social workers and to provide additional support to non-governmental organisation which provide critical welfare services. “The NDP also highlights the need to lower the cost of living for households, and to reduce the cost of doing business for small and emerging enterprises,” says the Finance Minister. In a Pointer for Pravin,Sbu Mazibuko, from Osizweni, said, “Pravin has to focus mainly on health and education as essential services.” While no mention was made of the controversial essential services proposals, the minister did spell out what each department would be getting. Amongst others: · -The Health portfolio received R288 billion in 2013/2014. In 2012, a total of 1967 health facilities and 49 nursing colleges were in different stages of planning, construction, and refurbishment. · -Education, and sport and culture receives R233 billion. The education sector will focus on improving numeracy and literacy, expanding Grade R enrolments, and school infrastructure backlogs. · -Higher education institutions are to receive R4.2 billion more and the technical secondary school recapitalisation grant received R700 million over the medium-term budgetary period. · -Economic services receive R48 billion/ The Square Kilometre Array (SKA) project receives R2 billion. · -Transport, Energy, and Communications receive R89 billion in total.
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– By Christelle du Toit
