First, the pandemic has starkly exposed the country’s high levels of inequality.
Budget cuts that are not properly planned and managed will invariably result in decreasing services and service quality. Those in low-paying, precarious work have lost their jobs and income, or have been forced out to work. This is a massive R304.1 billion below the budgeted tax revenue presented in February’s Budget. —
Ultimo, New South Wales, Public Sector Contract Management Time for action. Since 2013, the Government Technical Advisory Centre - a unit in Treasury - has conducted at least 39 Performance and Expenditure Reviews. Every way in which South Africa is unequal has been exacerbated by the pandemic. Black women were hit hardest, followed closely by black men.
Not only has South Africa continued to experience the most abhorrent forms of gender-based violence under the lockdown, but the pandemic has also exposed the deep gender-based inequality in both paid and unpaid work.
Second, within the current fiscal year, government has cut R101 billion from various budget lines, and reallocated R145 billion worth of expenditure for COVID-19 measures – hence the R44 billion of net additional expenditure. Expenditure, on the other hand, which was initially projected at R1.766 trillion, is now projected to be R1.809 trillion – an increase of about R44 billion. Instead of cutting all department budgets by a fixed percentage, Treasury should shortlist specific areas for protection. — A shortlist of areas that are protected from cuts is a good starting point. A principled approach is needed that ensures the poorest households are least affected by budget cuts. The 2020 Budget Review 4. Children at private schools continue learning online, while the vast majority of learners in the public system have not had any schooling for almost three months. In many of its pronouncements on managing the economic fallout from the pandemic, the government has emphasised its intention to forge a new economic growth path that would address the high levels of inequality in South Africa. South African Budget 2020. The net result is that the deficit, originally expected to be R368 billion, is now estimated to be R709 billion.
David Francis works at the Southern Centre for Inequality Studies which receives funding from international foundations that fund research. The recently released National Income Dynamics Survey provides some important context. Melbourne, Victoria, Outcomes Based Budgeting Course South African Finance Minister Tito Mboweni in September 2019. How to address this shortfall is the primary challenge. Government had, in the original 2020/21 budget, projected its revenue for the fiscal year to be R1.398 trillion. This would require budget allocations to realise any such plans. So far, very few of the proposals have been acted on. And what can be learnt from the budget about government’s plans to seriously work towards such a new economy? The austerity measures required to balance a budget can inflict permanent economic damage on the poorest and most vulnerable citizens, and deepen inequality. On the basis of what has been said (and not said) in the supplementary budget, we can expect inequality to rise significantly. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Unfortunately, we are not provided with details on where these cuts in expenditure will occur. To put this in context, between 2007 and 2020 the stock of government net loan debt rose six-fold from under R500 billion in 2007 to nearly R3 trillion in March 2020.
Consequently, tax revenue is expected to be significantly lower than the 2019 mid-term budget policy statement (MTBPS) estimates. If Mboweni is looking for some well researched areas to cut government spending, that would be a good start. This has a long-term impact on safety and security. Basic healthcare - particularly maternal and child health and vaccinations - should also be included. Second, how will this surplus will be achieved, and at what cost, to whom? Budget 2020 Presentation: Risk, Renewal and Growth (932kb) The Jobs Fund 2020 ... South Africa Government Online Auditor-General Provincial Treasuries Collaborative Africa Budget Reform Initiative (CABRI) Jobs Fund Independent Regulatory Board for Auditors (IRBA) In short, we need a caring state and an approach to budgeting that doesn't deepen the inequality of access to education, health and safety. South Africa’s budget to deal with COVID-19 fails to pave way for more equal society June 25, 2020 9.41am EDT David Francis , Imraan Valodia , University of the Witwatersrand SA needs a caring state and a budget that doesn't deepen inequalities in education, health and safety.
First, the narrower measure of the budget deficit for 2020/21 has, as a result of COVID-19, shifted from 6.8% of the gross domestic product (GDP) to 14.6% of GDP. In his budget speech at the beginning of 2020, Mboweni indicated that spending reviews would be undertaken to ensure the effective use of limited resources. What will the 2020 Budget Speech mean for you and your business? We are operating under an economy both colonial and racist. Third and most strikingly, government plans to have a primary budget surplus (that is, the difference between revenue and expenditure before debt payments) by 2023/24, in order to deal with its growing debt. There are no simple solutions. This should include social grants, programmes that ensure access to clean water and sanitation, and food security initiatives including the school feeding scheme. Ultimo, New South Wales, Towards Strategic Leadership - In a Time of Prolonged Crisis Please try again later. The same study is clear that structural interventions to ensure food security, access to basic healthcare, education opportunities, employment, and to support parents are essential to breaking the intergenerational nexus of poverty, trauma and poor health.
Public Sector Finance Course Uses the economic tools at its disposal to alter the outcome of earnings and rents earned through economic activity by increasing the incomes of low income groups, through, for example, increasing levels of employment, providing better support to the unemployed, and raising the level of wages. This will be South Africa’s worst tax performance since at least 1996. South Africa’s revised budget – snapshots Debt crisis: The mouth of the hippopotamus. African Union-Led Talks On Nile Dam Dispute Set to Resume, Ministers Defend Bailout for Embattled South African Airline, South Africa's Medium-Term Budget Leaves Most Cold, Special Police Team to Probe South African Lottery Corruption, Are Africa's Borders Sacrosanct? And if so, what principles should guide government's thinking as it grapples with this problem? Treasury's favoured approach of cutting all department budgets by a fixed percentage risks driving already precarious households into a struggle for survival. In simple terms, the economy is expected to contract by at least 7.2% this year.
The budget is one of the key tools that government has to effect meaningful change, though it can’t address all these problems on its own.
Increases the level of taxation on the wealthy and uses the proceeds for more effective targeting of expenditure.
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