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Revised Medium Term Strategic Framework (MTSF) 2019-2024

Revised Medium Term Strategic Framework (MTSF) 2019-2024 Introductionandbackground Currentcontext Problemstatement Approach to the MTSF and the revision Key interventions per priority area Driving implementation2 Overview of the presentationIntroduction and background3 TheMTSF2019-2024wasdevelopedin2019,appro vedbyCabinetattheendofOctober2019andoffi ciallylaunchedwiththeSONA2020forimplemen tation Subsequently,adecisionwastakentoreviseth eMTSF basedoncriticalnewdevelopmentsincludingt heCOVID-19pandemic Amongtheimpactsofthepandemicwassignifica ntbudgetreprioritization,whichaffectedde partmentalbaselinesandtheMTSF targets Majorcontextualfactorstakenintoconsidera tionincludedthefollowing: Publichealthcontext,includingreallocatio noffundsforsocio-economicrelief,higherpu blichealthexpenditureandthevaccinerollou t Economiccontext,witheconomiccontraction, highunemploymentandlowerrevenueprojectio ns Fisc

apartheid legacy” (25-year review, DPME, 2019) Lack of economic transformation, continued economic exclusion, skewed ownership patterns and slow land redistribution High levels of unemployment, poverty and hunger exacerbated by COVID-19 Persistence of wealth, income and gender inequality Imbalance between redistribution and productive capacity

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Transcription of Revised Medium Term Strategic Framework (MTSF) 2019-2024

1 Revised Medium Term Strategic Framework (MTSF) 2019-2024 Introductionandbackground Currentcontext Problemstatement Approach to the MTSF and the revision Key interventions per priority area Driving implementation2 Overview of the presentationIntroduction and background3 TheMTSF2019-2024wasdevelopedin2019,appro vedbyCabinetattheendofOctober2019andoffi ciallylaunchedwiththeSONA2020forimplemen tation Subsequently,adecisionwastakentoreviseth eMTSF basedoncriticalnewdevelopmentsincludingt heCOVID-19pandemic Amongtheimpactsofthepandemicwassignifica ntbudgetreprioritization,whichaffectedde partmentalbaselinesandtheMTSF targets Majorcontextualfactorstakenintoconsidera tionincludedthefollowing.

2 Publichealthcontext,includingreallocatio noffundsforsocio-economicrelief,higherpu blichealthexpenditureandthevaccinerollou t Economiccontext,witheconomiccontraction, highunemploymentandlowerrevenueprojectio ns Fiscaloutlookheavilyconstrainedwithhighd ebttoGDPratio Notablethateffectivelyonlythreeyearsofim plementationremainingforthe6thadministra tion 2021/22,2022/23and2023/244 Introduction and BackgroundProblem statement56 High-level problem statement The state has not adequately utilized the levers at its disposal to fundamentally entrench the economic rights of the historically disadvantaged and reverse the apartheid legacy (25-year review, DPME, 2019)

3 Lack of economic transformation, continued economic exclusion, skewed ownership patterns and slow land redistributionHigh levels of unemployment, poverty and hunger exacerbated by COVID-19 Persistence of wealth, income and gender inequalityImbalance between redistribution and productive capacityLow growth rates, economic contraction and decline in revenueLack of digital readiness Despite significant progress since 1994, critical challenges persist:Weaknesses in building a capable state and implementing NDP prioritiesInsufficient reach and impact of government programmesand public expenditureSpatial disparity and persistence of apartheid spatial planningContinued inequality in access to and quality of public services, education & health systemsPersistence of GBVF and violent crimeCorruption threatening moral and ethical basis of democracy and undermining public trust Significant improvements in employment, poverty and growth over the decade up to 2008, since then progress has stalled.

4 High structural unemployment and a lack of economic participation have impacted on efforts to raise living standards, eradicate poverty and achieve greater equity; Performance in meeting NDP objectives for industrial dynamism over the past decade has been poor; South Africa still has high levels of market concentration, significant presence of collusive behaviourand legacy barriers to market access for new players, especially those that were historically disadvantaged; Significant asset poverty amongst the majority of the population contributes to vulnerability and constrains intergenerational class mobility -slowing overall economic and employment growth the suite of challenges relates to land ownershipin rural, township and urban areas, home ownership, access to finance, and the ability to build up household savings Insufficient efforts to address the youthand genderdividend and focus on higher levels of economic inclusion 7 Why have we not achieved the desired inclusive growth?

5 Much has changed for the better since the apartheid era [but] the lived reality for the majority of South Africans is still of high unemployment, limited access to economic opportunities, and asset poverty (Economic Progress Towards the NDP, NPC 2020) Publicinfrastructureinvestment mostnotablyinrespectofenergy,water,ICT,a ndtransport iscentraltoachievinggreaterproductivitya ndcompetitiveness,reducingspatialinequal ityandsupportingtheemergenceofnewjob-cre atingsectors; Electricityshortagesarestillakeyconstrai nts, ; Evidencesuggeststhatthesocialwagehasmade asignificantimpactonthequalityoflife, , buttherearelimitstothecontributionofthes ocialwage; Althougheducationoutcomeshaveimproved,we stilllagbehindbasedoninternationalbenchm arks-thereisaveryclosecorrelationbetween improvementineducationandemploymentandin comes; Thequalityofdelivery frompublicinfrastructuretoskillsdevelopm ent ,usesstateresourcesefficiently,andbuilds theconfidenceofcitizensandtheprivatesect or; TheCOVID-19pandemichasworsenedeconomicgr owth,unemployment, have we not achieved the desired inclusive growth?

6 (2)Approach to the MTSF & revisionPlanning Framework , NDP and electoral mandate, MTSF objectives, prioritization and new inputs 910 Planning frameworkLong-term National PlanningCuts across all sectorsNational Development PlanOverarching objectives High-level trade-offs Critical steps on the pathto 20305-yearplanGovernment Strategic prioritiesBuilding block ofNDPG ives effect to electoral mandate and prioritiesSets out key deliverables and targets for departmentsMTSF & Delivery Agreements5-yearplanNational and provincial depts., public entities Aligned with MTSF priorities and targetsSectoraland Departmental mandates and activitiesAnnual plan Actions required to meet sectoralandDepartmental plansSectoral & Departmental PlansAnnual outputs to achieve five-year Departmental outcomes ( Strategic Plan)

7 And sectoralplansAnnual Performance PlansProvincial Development PlansImplementation of programmesand policiesMunicipalIDPs & One PlanActive citizensSocial compactNational Development PlanThe NDP is our long-term Strategic plan that serves four broad overarching goalsto be achieved by consensuson the key obstacles and specific actions to be a common Framework for detailed long term a basis for making choicesabout how best to use limited resources11 The overarching goals of the NDP: NDP review assesses progress towards Vision 2030 and makes recommendations for course correction towards the achievement of NDP targets and outcomes TheMTSF isthefive-yearbuildingblockoftheNDPandgi veseffecttotheelectoralmandateofthegover ningpartyfortheelectoralterm BothseektoachieveabetterlifeforallSouthA fricansbyaddressingthetriplechallengesof theunemployment,povertyandinequality Theelectoralmandateisderivedfromthe2019 Manifesto Let sGrowSouthAfricatogether:Apeople splanforabetterlifeforall TheElectoralMandateseeksto.

8 TransformtheEconomytoservethepeople AdvanceSocialTransformation BuildSaferCommunities FightCorruptionandPromoteIntegrity StrengthenGovernanceandPublicInstitution s BuildNationalUnityandEmbraceDiversity PromoteaBetterSA, NDP, Electoral Mandate and the MTSFA pproach to the 2019-2024 MTSFThe MTSF is a national Medium -term development planning instrument which adopts a results-based approachto outcome and impact planningMTSF focus is on seven national Strategic prioritiesof the 6th administration of government towards the achievement of NDP goals in particular those relating to poverty, inequality and unemploymentIt sets out the desired impacts and outcomes, indicators and targetsin undoing the structural pillars of apartheid which produced multi-generational impoverishment of black people in general and Africans in particularThe MTSF is the central organising Framework for integrated planning, implementation, coordination, alignment and monitoring over the five-year to the 2019-2024 MTSF MTSF provides basis for Alignment across planning instruments incl.

9 NDP and plans at sectoral, provincial (PGDS/PMTSF), local(IDPs, DDM One Plan) and institutionallevel (SPs and APPs) for greater impact Alignment of country plans with global, regional and sub-regional instruments(SDG 2030, AU 2063 and SADC RISDP 2030) More effectiveprogrammedevelopmentand design to achieve targets Decisions on resourcingand impact of public expenditure Partnerships and social compacting Planning to fast-track spatial transformation through location of projects to address spatial inequalities and priorities Alignment between national Strategic priorities and public sector performance management system Greater accountabilitythrough Performance Agreements between President, Ministers, Deputy Ministers and Directors General15 The Overarching MTSF and NDP Goals remain in placeMeasures and IndicatorsBaselineMTSF (income)

10 Are as at 2019 The seven Apex Priorities remain in placeThe Seven Priorities are derived from the NDP, Electoral Mandate and SONA: Priority 1: A Capable, Ethical and Developmental State Priority 2: Economic Transformation and Job Creation Priority 3: Education, Skills and Health Priority 4: Consolidatingthe Social Wage through Reliable and Quality Basic Services Priority 5: Spatial Integration, Human Settlements and Local Government Priority 6: Social Cohesion and Safe Communities Priority 7: A better Africa and WorldCross Cutting Focus: Women, Youth & Persons with If state capability is poor, then even the best-designed policies and interventions will not Building a capable state is a top priority in delivering on economic objectives.


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