Policy priorities and public service delivery

1 6 Policy priorities andpublic service delivery south africa s development challenge is not limited to more rapid growth it is also aboutbroadening participation and accelerating the pace of social 2006 Budget proposals give greater impetus to social development and public service delivery ,continuing the strong focus on reducing poverty and extending basic services to all south support targets a wide range of expanded programmes in housing, education, health,skills development, social security, justice and fighting recognises the need to moderate consumption expenditure and ensure that investment enjoys priority in the allocation of available resources.

2 A structural acceleration ofgrowth, if it is to be sustained and shared by all, must rest on both broad-based capital formationand efficient public service delivery . Major public infrastructure investments are planned for theperiod ahead, and initiatives to improve the quality and efficiency of public administration are africa s main network industries transport, communications, water and energy supply confront a series of complex strategic challenges with long-term consequences for growth anddevelopment. Several investment programmes, industrial Policy initiatives and regulatory reformsaim to ensure that both infrastructure capacity and improved economic performance underpinaccelerated economic growth and rising living development and peacekeeping initiatives, as part of government s broad internationalefforts to encourage peace and security, receive further support over the period growth.

3 Medium-term Policy prioritiesGrowth, economic participation and social development south africa s economic and social policies flow from the democraticvalues and respect for human dignity enshrined in the the annual budget, Government seeks to ensure that socialand economic rights are progressively realised, that the legacy ofhistorical injustice is redressed, and that future generations will enjoythe fruits of broad-based development and robust economic growth. Budget reflectsprogressiveimplementation of social, economic rightsIn keeping with leading international approaches to development,Government s growth strategy focuses both on physical investment1012006 Budget Reviewand on human capital.

4 It fosters a climate for robust and sustainedinvestment in productive capacity, and it promotes investment inpeople s skills and circumstances differ from one country to another, and SouthAfrica s development strategy and priorities must also take account of the post-apartheid landscape. This includes historically fragmentedgovernance arrangements, barriers to black land and businessownership, highly uneven education and training systems, andinefficient spatial planning and infrastructure networks.

5 The policyframework summarised in this chapter seeks to overcome the barriersto growth embedded in this inherited legacy, and to open upopportunities that have historically been denied to the majority ofSouth Africans. The growth challengeincludes add essinghistorical barriers to broad-baseddevelopmentrfCauses ounemployment include spatial fragmentationand skills shortfalls As outlined in Chapter 2, south africa s economic performance has steadily improved over the past five years, and a coordinated initiativeaimed at sustained annual growth of 6 per cent or more is under , there are sharp divisions between the modern economy andmarginalised communities, between formal employment and theinsecurity of the unemployed.

6 Between rich and poor. The causes of unemployment are embedded in both the physical andsectoral structure of the economy, shaped for so long by barriers tourbanisation and modernisation, and the distribution of skills andhuman capability, also held back for decades by apartheid Policy growth has accelerated since 2001 from about 3 per cent ayear to just below 5 per cent, raising the pace of job creation to about350 000 a year at present. The widening social security net nowprovides income support to 10 million people.

7 Basic water, sanitation,housing and electricity services contribute significantly to povertyreduction. The Policy framework outlined below builds on these foundations, while highlighting several more complex challenges to be addressed if the momentum of growth and development is to besustained and budget priorities The 2006 Budget presents a series of proposals to accelerate anddeepen social development and public service delivery over the periodahead. Government is mindful of the need to moderate consumptionexpenditure and ensure that investment enjoys priority in theallocation of available resources.

8 A structural acceleration of growth, if it is to be sustained and shared by all, must rest on both capital formation and efficient public service growthdepends on capital formation and efficientservice deliveryThis chapter provides brief summaries of key social and economicdevelopment Policy initiatives that extend over the MTEF core priority is to strengthen education and improveperformance of the labour market. Investing in people andensuring that skills development complements employmentcreation are critical platforms on which to build future prosperity.

9 102 Chapter 6: Policy priorities and public service deliveryTable 2006 Budget priorities additional MTEF allocationsR million2006/072007/082008/09 TotalProvincial equitable shareincludes school education, health care, welfare services , provincial roads, agriculture and economic development3 5119 51717 85330 881 Education, health and welfareHigher education and recapitalisation of FET institutions3507501 3002 400 Revitalisation of hospitals and forensic pathology services3405546571 551 Social grants and SA Social Security Agency administration6609101 0902 660 Housing and community developmentHousing grants8001 2001 5003 500 Municipal infrastructure, transport and water schemes1 1801 4703 1005 750 Community libraries, cultural institutions.

10 Sports promotion1704288431 441 Neighbourhood development partnerships509501 5002 500 Soccer World Cup infrastructure4001 0001 6003 000 Economic infrastructure investmentNational roads and rail rehabilitation6001 1001 8003 500 Gautrain rapid rail link3 2412 1511 7367 128 Industrial development zones and other infrastructure4457901 0502 285 Industrial development, science & technologyResearch and Development2854306401 355 Pebble Bed Modular Reactor & NECSA650120110880 Tourism promotion2060100180 Regulatory capacity199187214600 Justice and crime preventionCourts administration and capacity3505509001 800SA Police service infrastructure and personnel5099622 0953 566 International relations and defenceMilitary skills development100200300600 Defence modernisation.