REPORT ON THE MEDIUM TERM BUDGET POLICY STATEMENT 2003
R 000’s |
2002/ |
2003/ |
2004/ |
2005/ |
2006/ |
Real Change 2003/04 to |
Real Average Annual Change |
Education |
62868 |
69329 |
75582 |
80530 |
85626 |
3.5% |
2.6% |
Health |
35052 |
39305 |
43401 |
47502 |
51691 |
4.9% |
4.9% |
Welfare and Social Security |
41485 |
49287 |
55664 |
64259 |
70577 |
7.3% |
9.5% |
Other Social Services |
13677 |
16736 |
18219 |
19674 |
20771 |
3.4% |
5.8% |
Defence |
20763 |
22981 |
23131 |
25099 |
24781 |
-4.4% |
-0.8% |
Justice, Police and Prisons |
32656 |
36021 |
39778 |
43211 |
46164 |
4.9% |
3.7% |
Water and related services |
4679 |
6374 |
6104 |
6758 |
7191 |
-9.1% |
6.2% |
Agriculture, forestry and fishing |
5729 |
6750 |
7155 |
7701 |
8218 |
0.7% |
4.1% |
Transport and Communication |
13825 |
15623 |
16929 |
19403 |
20615 |
2.9% |
5.3% |
Other Economic Services |
12176 |
15396 |
17044 |
19145 |
21666 |
5.1% |
11.1% |
Administration |
20119 |
22426 |
27395 |
29995 |
32193 |
16.0% |
7.5% |
Total |
263028 |
300229 |
330400 |
363277 |
389493 |
4.5% |
5.1% |
Key spending priorities for the 2004 Budget as set out in the MTBPS are:
Renewed focus on employment creation through the expanded public works programme
Increased infrastructure spending
R12 billion apportioned for HIV/AIDS and ARV rollout over four years, with ARV rollout planning at an advanced stage.
Extension of social security grants, through the Child Support Grant and other grants targeting vulnerable groups
Learner support materials for poor schools
Continued rollout of free basic services and investment in municipal infrastructure
Strengthening the Safety and Security sector, through the sector policing strategy and a new Protection and Security Services Division. Child Justice Centres are provided for.
Improving core Home Affairs services to citizens, including rollout to rural areas
Promoting peace in Africa, including South African National Defense Force (SANDF) peace support, and regional trade and development
Promoting broad-based black economic empowerment (BEE) – a new budgetary priority.
Table 2
MTEF ALLOCATIONS BETWEEN SECTORS -- PERCENTAGES
2002/03 |
2003/04 |
2004/05 |
2005/06 |
2006/07 |
|
Education |
23.9% |
23.1% |
22.9% |
22.2% |
22.0% |
Health |
13.3% |
13.1% |
13.1% |
13.1% |
13.3% |
Welfare and Social Security |
15.8% |
16.4% |
16.8% |
17.7% |
18.1% |
Other Social Services |
5.2% |
5.6% |
5.5% |
5.4% |
5.3% |
Defence |
7.9% |
7.7% |
7.0% |
6.9% |
6.4% |
Justice, Police and Prisons |
12.4% |
12.0% |
12.0% |
11.9% |
11.9% |
Water and related services |
1.8% |
2.1% |
1.8% |
1.9% |
1.8% |
Agriculture, forestry and fishing |
2.2% |
2.2% |
2.2% |
2.1% |
2.1% |
Transport and Communication |
5.3% |
5.2% |
5.1% |
5.3% |
5.3% |
Other Economic Services |
4.6% |
5.1% |
5.2% |
5.3% |
5.6% |
Administration |
7.6% |
7.5% |
8.3% |
8.3% |
8.3% |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
The division of revenue between the spheres of government provides for additional allocations of R37 billion over the MTEF period. Apart from an adjustment for higher salary costs, and R6 billion for BEE initiatives, R29.2 billion goes to the three spheres for enhances services and new priorities. National departments receive 23%, provinces 64%, and local government 13% - relatively the largest increase.
DEPARTMENTS, STAKEHOLDERS AND CIVIL SOCIETY BODIES WHICH MADE ORAL PRESENTIONS BEFORE THE COMMITEE: