Sustaining state’s social and economic progress
Much has been done but far more is needed, especially for the poor
GOVERNMENT spending increased to R632 428 million in the first quarter of last year, up from R630 786m in the fourth quarter of 2015, according to the South African Reserve Bank. More South Africans today have access to running water, electricity, homes, access to public schools, state-run clinics and hospitals than ever before.
Much has been accomplished for a broader section of our population over the past two decades and the government is aware that more needs to be done to ensure especially the poorest of the poor have an improved quality of life.
Further data also revealed that government spending averaged R304 455.29m from 1960 until last year, reaching an all-time high of R632 428m in the first quarter of last year and a record low of R65 991m in the first quarter of 1960.
Also, government and public agencies invested more than R1 trillion in infrastructure between 2009 and 2014.
The investments were in energy, road, rail, ports, public transport, bulk water and sanitation, hospitals, basic and higher education infrastructure and projects such as the Square Kilometre Array and MeerKAT telescope.
As mentioned earlier, much needs to be done and the government continues to take a longterm view, underpinned by the development goals set out in the National Development Plan which, among others, seeks to transform the economy.
It is perhaps necessary to remind ourselves that tough economic times, at home and abroad, bring with them their own challenges and opportunities and growth forecasts, and government spending is adjusted accordingly.
As was reflected in the past few years’ Budgets, the government will seek to address public sector infrastructure bottle-necks through reform and capacity building, with capital expenditure by the public sector projected at just more than R865 billion over the next three years.
The government recognises and has never been averse to the reality that it cannot address economic and development challenges alone.
The government intends to, and has in the recent past, markedly increased its engagement and collaboration with business, labour and civil society to bolster the resilience of the economy.
The government will continue to drive its partnership with the private sector to co-invest in infrastructure and skills development.
After all, the government’s primary objective is the well-being of its citizenry.
Investments in additional power-generating capacity and independent power producers will increase electricity supply and improve reliability.
Given the slowdown in the global markets and its effect on emerging economies like South Africa’s, it has become more important to ensure proper fiscal management and prudent use of public money.
It is important that the government sustain social and economic progress by focusing on the identified developmental priorities.
But we believe the long-term goals set out in the National Development Plan hold the key to unlocking and transforming the economy and, by extension, positively impacting the lives of all South Africans.
Infrastructure expansion, economic growth and overall development require specific skills.
We need more engineers, more artisans, more qualified teachers and health professionals, to name a few.
One of the most integral parts of advancing prosperity is a society in which small businesses and co-operatives flourish.
But these do not happen in a vacuum. We encourage young people to seek vocational careers, call on South Africans to buy local, to support small businesses and, above all, to work together to help transform our society.
The government is under no illusion about the challenges we face. The road ahead is not an easy one, but we are steadfast in our belief that we have a socio-economic blueprint in the National Development Plan that will benefit generations to come.
We will continue to drive and support structural reforms and economic transformation needed to achieve and sustain far higher levels of growth in the economy.
As South Africans, we tend to overamplify the negatives and need others to tell us that we are highly regarded by others elsewhere in the world.
For example, in its 2015-2016 Global Competitiveness Report, the World Economic Forum ranked South Africa 49th in its Global Competitiveness Index out of 140 economies, up from 56th in the previous reporting period.
It ranked the country first for strength of auditing and reporting standards as well as financing through local equity market.
South Africa was also ranked 12th for financial market development, it ranked 29th for market size, 33rd for business sophistication and 38th for innovation, out of 140.
That is all good and well but we, the government, will always use the people’s satisfaction or otherwise with the work we do as a true yardstick of how far we have come and how far we need to travel to transform the country.
Our success should be measured by how effective we are at alleviating poverty, and not by how much we have as individuals.
THE GOVERNMENT WILL CONTINUE TO DRIVE ITS PARTNERSHIP WITH THE PRIVATE SECTOR TO CO-INVEST IN INFRASTRUCTURE AND SKILLS DEVELOPMENT