Budgeting For Change and Jobs: 24 February 2014

8udget|ng for Change and Iobs
24 lebruary 2014
2

Contents
1. lnLroducLlon ................................................................................................................................... 3
2. 8udgeLlng for change ..................................................................................................................... 4
2.1. A slngle economlc vlslon ........................................................................................................ 4
2.2. SouLh Afrlca's debL burden .................................................................................................... 3
2.3. CosL conLalnmenL .................................................................................................................. 7
2.4. lallure Lo dellver on lnfrasLrucLure promlses ...................................................................... 10
2.3. Carbon Lax ............................................................................................................................ 12
2.6. Lxchange conLrol ................................................................................................................. 13
2.7. 1ax revlew ............................................................................................................................ 14
2.8. llscal and moneLary pollcy prlnclples .................................................................................. 13
3. ueLalled proposals ....................................................................................................................... 16
3.1. rovlde leadershlp on Lhe economy .................................................................................... 16
3.2. Manage publlc money beLLer .............................................................................................. 16
3.3. ulrecL lncenLlves for [ob creaLlon ........................................................................................ 21
3.4. A labour reglme LhaL supporLs [ob creaLlon ........................................................................ 22
3.3. SupporL small buslness ........................................................................................................ 22
3.6. losLerlng economlc lncluslon .............................................................................................. 24
3.7. CreaLe an enabllng envlronmenL for growLh and lnvesLmenL ............................................. 26
3.8. lnvesL ln knowledge ............................................................................................................. 27
3.9. romoLe lnvesLmenL and savlngs and reduce lndebLedness ............................................... 30
3.10. lncrease Lrade .................................................................................................................. 30
3.11. SusLalnable developmenL and Lhe green economy ......................................................... 31
3.12. keep SouLh Afrlcans safe ................................................................................................. 33
3.13. A comprehenslve soclal safeLy neL .................................................................................. 33
4. 8udgeL Lable ................................................................................................................................ 36

3

1. Introduct|on

1he uA's AlLernaLlve 8udgeL shows how we would overhaul LaxaLlon and expendlLure Lo lmplemenL
Lhe key pollcy proposals from our manlfesLo. 1hls comprehenslve alLernaLlve Lo Lhe naLlonal budgeL
seLs ouL Lhe flrsL sLeps of our plan Lo lncrease economlc growLh Lo 8 and help Lo creaLe 6 mllllon
real [obs ln Lhe nexL Len years

SouLh Afrlca needs change LhaL brlngs [obs. 1haL change musL focus on breaklng down Lhe barrlers
beLween Lhe lnslders and ouLslders. 1he AparLheld governmenL dlvlded SouLh Afrlca, buL Lhe currenL
governmenL has noL brldged Lhe dlvlslons - Lhe lnsLlLuLe for !usLlce and 8econclllaLlon has found
LhaL, slnce 1993, lnequallLy ln our counLry has acLually lncreased marglnally
1
.

1hls AlLernaLlve 8udgeL shows noL only how we can afford Lo lmplemenL our manlfesLo, buL also
how we can'L afford oot Lo lmplemenL lL.

Cur counLry faces numerous economlc challenges Loday and mosL of Lhem sLem from a loss of
confldence ln !acob Zuma's AnC Lo manage our economy. Accordlngly, our AlLernaLlve 8udgeL would
seL ouL Lo rebulld confldence ln SouLh Afrlca by Lackllng speclflc reforms Lo:

brlng down governmenL debL by Labllng a lower budgeL deflclL of 4 of Cu,
lnLroduce aggresslve cosL conLalnmenL measures Lo save 830.3 bllllon,
spend 10 of Cu Lo bulld and malnLaln lnfrasLrucLure,
meeL fundlng requlremenLs and lncenLlvlse change wlLhouL addlng new Laxes llke carbon Lax,
remove exchange conLrols, and
overhaul our approach Lo Lax Lo reduce red Lape and sLlmulaLe economlc growLh.

8eyond Lhls, our addlLlonal budgeL proposals are conLalned ln Len secLlons LhaL mlrror our new
economlc pollcy 1he lan for CrowLh and !obs 2014", wlLh Lhree added secLlons for furLher
proposals from our 2014 LlecLlon ManlfesLo released yesLerday. Some hlghllghLs:

- 8oosL Lhe [ob-creaLlng poLenLlal of companles, and parLlcularly small buslnesses, Lhrough a
proposed sLlmulus package lncludlng 88.7 bllllon ln Lax cuLs and 82.4 bllllon ln addlLlonal supporL
programmes,
- lully lmplemenL Lhe ?ouLh Wage Subsldy and lnvesL an addlLlonal 81.8 bllllon ln [ob creaLlon,
- lnvesL an addlLlonal 89 bllllon ln educaLlon and skllls developmenL,
- ApproprlaLe more Lhan 83.2 bllllon Lo promoLe empowermenL and caplLallse poor SouLh
Afrlcans, and
- keep SouLh Afrlcans safer wlLh an addlLlonal 84.3 bllllon Lo secure our communlLles.

Cur AlLernaLlve 8udgeL would acceleraLe growLh by maklng our economy more compeLlLlve and glve
SouLh Afrlcans Lhe Lools Lo parLlclpaLe ln economlc acLlvlLy. lL would resLore confldence ln Lhe
economy, encourage lnvesLmenL, boosL economlc growLh and reduce unemploymenL.

1
lnsLlLuLe for !usLlce and 8econclllaLlon. 1toosfotmotloo AoJlt 2011. Cape 1own: lnsLlLuLe for !usLlce and 8econclllaLlon.
4

2. 8udget|ng for change

2.1. A s|ng|e econom|c v|s|on

1he naLlonal uevelopmenL lan (nu) could be a slngle reform agenda for governmenL Lo unlLe
around Lo drlve economlc growLh and help Lo draw down debL. unforLunaLely, whlle Lhe uA has
[olned Lhe llnance MlnlsLer ln hls supporL for Lhe plan, lL ls noL clear LhaL resldenL Zuma ls prepared
Lo use hls pollLlcal caplLal Lo neuLrallse opposlLlon Lo Lhe plan wlLhln Lhe 1rlparLlLe Alllance.

Cver hls Lerm resldenL Zuma has exempllfled hlmself as Lhe klnd of leader LhaL keeps everyone
happy by avoldlng Lhe Lough declslons needed Lo see reforms, llke Lhose proposed ln Lhe nu,
lmplemenLed. Pe seems Lo fear allenaLlng CosaLu who are on record dlspuLlng LhaL Lhere ls a broad
endorsemenL of Lhe nu" and clalmlng Lhe only oLher formaLlons Lo have welcomed (Lhe nu)
have been pro-buslness opposlLlon parLles and blg buslness"
2
.

uesplLe Lhe llp-servlce from Lhe resldenL ln lasL week's SLaLe of Lhe naLlon address, lL ls clear LhaL
Lhe nu ls also LhreaLened by Lhe conLradlcLory lndusLrlal ollcy AcLlon lan (lA) from Lhe
ueparLmenL of 1rade and lndusLry and Lhe new CrowLh aLh (nC) from Lhe ueparLmenL of
Lconomlc uevelopmenL.

Whlle Lhe nu presenLs a largely markeL-drlven vlslon for SouLh Afrlca, Lhe lA and nC puL Lhe
sLaLe aL Lhe cenLre of dlrecLlng economlc acLlvlLy. 1hey are ldeologlcally lncompaLlble and represenL
Lhe sLand-off aL Lhe hearL of Lhls governmenL's economlcs clusLer. ln Lhls 8udgeL Lhe llnance
MlnlsLer needs Lo speclflcally re[ecL Lhe nC and lA and announce a programme of
lmplemenLaLlon for Lhe nu.

compotlsoo of coofllctloq ecooomlc pollcy ftomewotks

IA NG ND
r|mary ob[ect|ves
Lxpandlng Lhe lndusLrlal base and
dlverslfylng exporLs.
LmploymenL creaLlon.
2 447 000 dlrecL and lndlrecL [obs by
202.

lA's pollcy proposals are evaluaLed
agalnsL Lhelr poLenLlal Lo lncrease
employmenL.

LmploymenL creaLlon.
8educLlon ln lncome lnequallLy.
lasLer economlc growLh.
Creen economy.
3 mllllon [obs by 2020.

1he nC purporLs Lo be a growLh paLh",
buL nelLher speclfles a growLh LargeL, nor
dlscusses growLh facLors.
Cu growLh of 3,4 per cenL beLween
2010 and 2030.
Annual employmenL growLh of 3,3 per
cenL Lo 2030.
CrowLh ln lnvesLmenL aL 13 per cenL a
year unLll 2030.
Average annual growLh of 6 per cenL
ln Lhe volume of exporLs.
11 mllllon [obs by 2030.

1he nu expllclLly recognlses LhaL
employmenL wlll be hlghly condlLlonal on
Lhe raLe of growLh.

L|m|tat|ons |n the economy
1he SouLh Afrlcan economy ls consumpLlon-
drlven, whlch ls noL susLalnable.

SouLh Afrlcan growLh ls consumpLlon-led,
buL lnLeresL raLes have fallen as a
consequence of Lhe hlgher nomlnal value of
Lhe 8and. Lower lnLeresL raLes have fuelled
consumer borrowlng.

SouLh Afrlca's economlc Lra[ecLory ls caughL
ln a mlddle lncome Lrap": lL ls unable Lo
compeLe aL Lhe boLLom-end" wlLh low-
lncome counLrles buL ls also unable Lo break
lnLo hlgher-value markeLs LhaL are
domlnaLed by hlgh-lncome counLrles.

2
CCSA1u. 2013. 5totemeot oo 8oJqet 5peecb. Avallable. [Cnllne]: hLLp://www.cosaLu.org.za/docs/pr/2013/pr0227.hLml (lebruary 2014).
3

1here are also fundamenLal boLLlenecks and
lmbalances ln Lhe economy whlch need Lo
be addressed.
lour key consLralnLs lmpede aLLempLs Lo
grow fasLer:
1he lack of compeLlLlon ln goods and
servlces,
uncompeLlLlve labour markeLs,
Low savlngs mean LhaL Lhe counLry ls
rellanL on forelgn caplLal lnflows,
A scarclLy of skllls

Where w||| new [obs be created
AparL from lA's aggregaLe LargeL for
employmenL growLh ln manufacLurlng,
Lhere ls llLLle analysls of whaL klnds of flrms
would besL allow for growLh.
LmploymenL growLh wlll largely occur ln
producLlve secLors and lnfrasLrucLure
generaLlon. 1hls ls [uxLaposed agalnsL Lhe
servlce secLor whlch ls regarded as a non-
key generaLor of growLh. 1here ls llLLle
analysls of whaL klnds of flrms would besL
allow for growLh.

1he nu envlsages LhaL 90 of
employmenL growLh wlll occur ln small,
labour-lnLenslve servlce flrms largely
orlenLed Lo Lhe domesLlc markeL. 1hese are
composed largely of seml-skllled and low-
skllled workers.
1hls wlll requlre large lncreases ln new flrm
enLry.
Labour market
no conslderaLlon 1he nC focuses on placlng resLrlcLlons on
sub - conLracLlng, labour broklng, and
ouLsourclng.
lL also advocaLes for workers ln unorganlsed
secLors Lo achleve greaLer organlsaLlon.
1he nu would supporL Lhe lmplemenLaLlon
of a youLh wage subsldy and wage
resLralnLs, and would regulaLe and subsldlse
Lhe labour placemenL secLor.

1he plan also advocaLes for slmpllflcaLlon of
dlsmlssal procedures and mlgraLlon pollcy
reform Lo aLLracL more forelgn skllls.
Source: AdapLed from kaplan, u. 2013. lollce CtlJlock? compotloq tbe ptoposols moJe lo tbtee ecooomlc pollcy Jocomeots. CenLre for
uevelopmenL and LnLerprlse. Avallable. [Cnllne]: hLLp://www.cde.org.za/publlcaLlons/[obs-growLh/83-[obs-and-growLh/422-pollcy-
grldlock-comparlng-Lhe-proposals-made-ln-Lhree-economlc-pollcy-documenLs (lebruary 2014).

2.2. South Afr|ca's debt burden

AfLer a once-off surplus ln 2007, Lhe governmenL has run slx consecuLlve budgeL deflclLs. 1hls means
LhaL Lhe sLaLe ls conslsLenLly spendlng more money Lhan lL has.

Plgher lnLeresL paymenLs on governmenL debL puL a squeeze on non-lnLeresL expendlLure. lL means
LhaL Lhere ls less money Lo spend on servlce dellvery.

1he fasLesL growlng budgeL lLem over Lhe nexL Lhree years wlll be lnLeresL paymenLs whlch are seL Lo
lncrease by 9.7 per year. 8y 2016 we wlll be spendlng 8140 bllllon servlclng our 82.2 Lrllllon debL.
1hls wlll be more Lhan we spend on healLhcare ln LhaL year.

Source: uevelopmenL lndlcaLors 2012 - ueparLmenL of erformance ManagemenL and LvaluaLlon
41,7
40,6
34,6
33,9
32,3
29,1
26
23
22,4
27,2
29,2
32,4
36,8
39,3
41,4
43,1
0
3
10
13
20
23
30
33
40
43
30
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0
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0
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2
0
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0
6

2
0
0
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/
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0
0
7

2
0
0
7
/
2
0
0
8

2
0
0
8
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0
9

2
0
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2
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6

G
o
v
e
r
n
m
e
n
t

d
e
b
t

a
s

o
f

G
D

Graph: Government debt as of GD (net |oan debt)
6

1oLal governmenL debL for 2013/14 ls almosL 40 of Cu and ls forecasL Lo reach 43 ln 2013/17.
1hls amounL ls much hlgher Lhan Lhe emerglng markeL average.

Plgh debL levels LhreaLen economles LhroughouL Lhe world, and Lhe World Lconomlc lorum has
ldenLlfled flscal crlses as Lhe Lop global rlsk ln lLs 2014 Clobal 8lsks reporL. llscal crlses occur when
lnvesLors begln Lo doubL a governmenL's fuLure ablllLy Lo repay borrowed money, Lhe governmenL
Lhen has Lo offer hlgher lnLeresL on lLs bonds Lo compensaLe lnvesLors for Lhe lncreased rlsk, glvlng
rlse Lo a vlclous cycle of balloonlng lnLeresL paymenLs and furLher doubLs.

MosL emerglng markeLs have been able Lo qulckly recover from Lhe recenL flnanclal crlsls and are
noL vulnerable Lo Lhe above scenarlo. AnalysLs have however expressed concern for Lhe so-called
lraglle llve" emerglng markeLs LhaL remaln vulnerable due Lo slzable governmenL debL and large
budgeL deflclLs. 1he lraglle llve lncludes 8razll, lndla, lndonesla, 1urkey and SouLh Afrlca Lhey were
ldenLlfled as belng mosL aL rlsk Lo Lhe Laperlng of quanLlLaLlve easlng ln Lhe uS.

Source: LconomlsL. 2013. cooomlc uebt clock. Avallable. [Cnllne]: hLLp://www.economlsL.com/conLenL/global_debL_clock

Whlle Lhe lraglle llve's debL-Lo-Cu levels range beLween 23 - 34, many emerglng markeLs have
much lower levels of governmenL debL. Chlle's naLlonal-debL-Lo-Cu ls 7.1, eru 16, nlgerla
18.3, 8ussla 8.1 and Chlna 17
3
.

1he uA's AlLernaLlve 8udgeL seLs ouL Lo reduce governmenL debL Lo levels closer Lo 33 of Cu ln
Lhe long Lerm by klcklng off an aggresslve process of flscal consolldaLlon. 1hls prlorlLy ls
demonsLraLed ln our commlLmenL Lo runnlng a budgeL deflclL of 4 of Cu ln 2014/13 - an
lmprovemenL on naLlonal 1reasury's budgeL deflclL forecasL of 4,1 of Cu.

3
LconomlsL. 2013. cooomlc uebt clock. Avallable. [Cnllne]: hLLp://www.economlsL.com/conLenL/global_debL_clock
41,1
7,1
23,2
13,9
18,3
29,7
43,1
6,1
23,6
14
18,8
27,9
0
3
10
13
20
23
30
33
40
43
30
SouLh Afrlca Chlle lndonesla eru nlgerla SouLh korea
e
r
c
e
n
t
a
g
e

Graph: Debt to GD
2014 2013
7

2.3. Cost conta|nment

1he flrsL sLep Lo reduclng governmenL debL ls Lo lnLroduce a programme of cosL conLalnmenL across
governmenL.

1hree areas are lmporLanL here. lltstly, llmlLlng Lhe leakages from Lhe publlc purse as a resulL of
corrupLlon and maladmlnlsLraLlon. 5ecooJly, a real commlLmenL Lo belL-LlghLenlng Lo conLaln
expendlLure on non-essenLlal, luxury goods and servlces. 1bltJly, conLlnulng Lhe efforLs Lo resLrlcL
lncreases ln Lhe publlc secLor wage blll.

cottloq cottoptloo
SouLh Afrlcans rely on Lhe governmenL Lo use publlc money Lo pursue pollcles and lmplemenL
programmes ln servlce of Lhe people.

LsLlmaLes of Lhe economlc lmpacL of corrupLlon vary, buL lL ls belleved LhaL Lhe governmenL
procuremenL budgeL loses beLween 823 bllllon and 830 bllllon per year Lo corrupLlon and
negllgence
4
.

CorrupLlon ln boLh Lhe publlc and prlvaLe secLor remalns rampanL. uurlng !acob Zuma's presldency,
SouLh Afrlca has dropped 17 places on Lhe 1ransparency lnLernaLlonal CorrupLlon ercepLlon lndex.

CorrupLlon places an enormous sLraln on Lhe publlc purse and has a negaLlve lmpacL on Lhe
percelved aLLracLlveness of SouLh Afrlca as an lnvesLmenL desLlnaLlon.

ln March 2013, Lhe AudlLor Ceneral revealed LhaL nearly 8600 mllllon ln Lenders were awarded Lo
suppllers llnked Lo employees of governmenL deparLmenLs awardlng Lhe Lender
3
. 1hls flndlng
echoed earller flndlngs by Lhe ubllc Servlce Commlsslon whlch showed LhaL Lhere ls slgnlflcanL

4
lormer head of Lhe Speclal lnvesLlgaLlng unlL, Wlllle Pofmeyer, gave Lhls esLlmaLe Lo arllamenL ln november 2011.
3
ue WeL, . 2013. 'AC palnLs bleak plcLure of sLaLe spendlng and managemenL', ln Moll & CootJloo. Avallable. [Cnllne]:
hLLp://mg.co.za/arLlcle/2013-03-13-ag-palnLs-a-bleak-plcLure-of-governmenL-spendlng-and-managemenL (AugusL 2013).
32
34 34
38
36
48
44
46
31
43
34
33
34
64
69
72
20
30
40
30
60
70
80
1998 1999 2000 2001 2002 2003 2004 2003 2006 2007 2008 2009 2010 2011 2012 2013
8
a
n
k
l
n
g

Graph: 1ransparency Internanona| - Corrupnon ercepnon Index
8

overlap beLween Lhe prlvaLe buslness lnLeresLs of senlor managers and Lhelr offlclal responslblllLles
wlLhln varlous governmenL deparLmenLs (29 ln ubllc Works, 28 ln 1ransporL, 28 ln Puman
SeLLlemenLs and 24 ln Co-CperaLlve Covernance). 1hls ls a breedlng-ground for corrupL acLlvlLles.

1o curb corrupLlon and maladmlnlsLraLlon, a naLlonal uA governmenL would:
lnLroduce a consLlLuency-based elecLoral sysLem Lo make elecLed represenLaLlve more
accounLable Lo Lhe people of SouLh Afrlca.
noL allow publlc servanLs, pollLlclans and Lhelr famllles Lo geL Lenders from Lhe governmenL. We
have adopLed leglslaLlon ln Lhe WesLern Cape Lo achleve Lhls, and we wlll propose slmllar
leglslaLlon everywhere we govern.
AdopL a no-frllls mlnlsLerlal handbook (based on Lhe WesLern Cape model) Lo sLop mlnlsLers
from uslng publlc money Lo drlve expenslve cars, fly flrsL class, sLay ln luxurlous hoLels, and have
exLravaganL parLles. CovernmenL money should be used Lo dellver servlces.
llre pollLlclans and publlc servanLs who have been found gullLy of corrupLlon, fraud, LhefL or
vlolenL crlme.
Clve more fundlng and supporL Lo anLl-corrupLlon bodles llke Lhe ubllc roLecLor, Lhe AudlLor
Ceneral and Lhe ubllc Servlce Commlsslon.
A teol commltmeot to belt-tlqbteoloq
A uA naLlonal governmenL would reallse slgnlflcanL savlngs by ensurlng greaLer efflclency and
reduclng non-core expendlLure.

ln lLs flrsL year ln governmenL ln Lhe WesLern Cape, Lhe uA broughL down cosLs for goods and
servlces by 3.27. Applylng Lhe same dlsclpllned spendlng on a naLlonal level could brlng down
naLlonal expendlLure on goods and servlces by 83.8 bllllon.

ln Lhe WesLern Cape Lhe uA achleved Lhls ln one year alone by dramaLlcally reduced spendlng by Lhe
prevlous AnC admlnlsLraLlon on lLems LhaL weren'L addlng value Lo Lhe people of Lhe WesLern Cape
lncludlng:
AdverLlslng: -32
ConsulLanLs: -38
venues & laclllLles: -29
CaLerlng: -28

SlgnlflcanL savlngs can also be reallsed Lhrough Lhe sLreamllnlng of governmenL deparLmenLs and
programmes. 1he uA esLlmaLes LhaL around 821.4 bllllon can be saved ln Lhls manner.

1ab|e: Lxcerpt from DA A|ternat|ve 8udget 2014]1S
"#$%&'()*)*+ +,-%$*'%*# ./ 0 120
ulsband Lhe ueparLmenL of Lconomlc uevelopmenL -8 169
Scale back Lhe ueparLmenL of ubllc Works -8 379
ulsband Lhe ueparLmenL of Women, Chlldren & eople wlLh ulsablllLles -8 219
SLreamllne Lhe ueparLmenL of SporLs & 8ecreaLlon -8 194
CreaLe an lnLegraLed lnnovaLlon ueparLmenL -8 1 302
uo away wlLh ulsLrlcL MunlclpallLles -8 300
9

34# ,$ 5#$%&'()*% +,-%$*'%*# 6$,+$&''%5 ./ 78 227
8educe resldency 8udgeL -8 231
ulsband Lhe naLlonal ?ouLh uevelopmenL Agency -8 411
SLreamllne enLlLles and programmes ln Lhe ueparLmenL of Labour -8 100
CuL vl SecurlLy 8lll -8 211
8educe SecreL Servlce 8udgeL -8 3 304
Savlng due Lo prlvaLlsaLlon of SA8C asseLs -8 100
Savlng due Lo prlvaLlsaLlon of SenLech -8 683
SLreamllne enLlLles ln uoPL and uS1 -8 197
ulsband SL1As -8 10 833
8eallocaLe resources from naLlonal 8ural ?ouLh Servlces Corps -8 328
8aLlonallse SouLh Afrlca's mlsslons abroad -8 300
MoraLorlum on Lransfers Lo Lhe Afrlcan 8enalssance lund -8 302
lasL Lrack prlson Lransfer agreemenLs and lnLroduce elecLronlc Lagglng -8 1 037

lobllc sectot woqes
ln Lhe 2013 8udgeL 8evlew, naLlonal 1reasury commlLs Lo a shlfL ln Lhe composlLlon of publlc
spendlng away from publlc secLor wages Lowards more producLlve areas. 1he bloaLed governmenL
wage blll, however, remalns a serlous concern, wlLh annual lncreases conLlnulng Lo ouLsLrlp lnflaLlon.
ln 2014/13, Lhe governmenL wlll be spendlng 34.7 of lLs LoLal budgeL on compensaLlon for
employees.

8oLh Lhe deslrablllLy of careers ln Lhe publlc secLor, and Lhe managemenL of performance ln Lhe
secLor, can be lmproved by dolng away wlLh Lhe currenL one slze flLs all" approach Lo salarles of Lhe
ubllc Servlce 8argalnlng Councll.

1he naLlonal uevelopmenL lan acknowledges LhaL Lhe bargalnlng councll represenLs dlfferenL
occupaLlons and skllls levels, leadlng Lo conflaLlon of prlorlLles and bargalnlng poslLlon"
6
.

As an lnLerlm sLep, Lhe uA would break Lhe councll lnLo separaLe chambers based on Lhe
occupaLlons and skllls levels ln publlc admlnlsLraLlon - as recommended by Lhe naLlonal lannlng
Commlsslon.

ln Lhe longer Lerm, we belleve LhaL deparLmenLs should be allowed Lo negoLlaLe dlrecLly wlLh
employee organlsaLlons on Lerms whlch meeL Lhe needs of Lhe parLlcular porLfollo. 1hls wlll allow for
performance Lo become a more lmporLanL deLermlnanL ln pay declslons and glve deparLmenLs more
laLlLude ln rewardlng scarce skllls.

6
naLlonal lannlng Commlsslon. 2012. 'naLlonal uevelopmenL lan: ChapLer 3 - Lconomy and LmploymenL'. Avallable. [Cnllne]:
hLLp://www.npconllne.co.za/MedlaLlb/uownloads/Pome/1abs/nu202030-CP3-Lconomy20and20employmenL.pdf (SepLember
2013).
10

2.4. Ia||ure to de||ver on |nfrastructure prom|ses

1o ensure LhaL Lhe SouLh Afrlcan economy has Lhe lnfrasLrucLure lL needs Lo grow and creaLe [obs, aL
leasL 10 of gross domesLlc producL (Cu) musL be lnvesLed ln lnfrasLrucLure - lncludlng roads,
porLs, rallways, alrporLs, elecLrlclLy and communlcaLlons lnfrasLrucLure.

8lg lnfrasLrucLure promlses have become a deflnlng feaLure of governmenL pronouncemenLs on Lhe
economy - parLlcularly ln Lhe SLaLe of Lhe naLlon speeches of resldenL !acob Zuma and Lhe 8udgeL
speeches of llnance MlnlsLer ravln Cordhan.

1here are Lwo lmporLanL Lhlngs Lo keep ln mlnd when conslderlng Lhe governmenL's lnfrasLrucLure
promlses. llrsLly governmenL has falled Lo spend lLs budgeLs for lnfrasLrucLure, and secondly even
Lhe budgeLed amounLs fall slgnlflcanLly shorL of Lhe 10 of Cu envlsaged ln Lhe naLlonal
uevelopmenL lan.

uesplLe Lhe blg Lalk, Lhe Zuma-governmenL has conslsLenLly under-dellvered on lLs lnfrasLrucLure
promlses, and has been unable Lo spend Lhe budgeLs allocaLed Lo Lhls crlLlcal spendlng prlorlLy. 1he
2013 8udgeL 8evlew concedes LhaL Lhere are many areas wlLhln governmenL and Lhe broader
publlc secLor where lnfrasLrucLure dellvery ls weak, characLerlsed by delays, poor plannlng, lack of
pro[ecL managemenL capaclLy and lnadequaLe overslghL."

uaLa source: naLlonal 1reasury 8udgeL 8evlew: 2012 and 2013.
noLe: Lhe LruLh deflclL" for 2012/13 Lo 2014/13 ls based on an exLrapolaLlon of reporLed under-spendlng beLween 2009/10 and 2011/12.

A comparlson of budgeLed versus acLual lnfrasLrucLure spendlng shows a LruLh deflclL" of around
18. lf Lhe reporLed LruLh deflclL" beLween 2009/10 and 2011/12 ls exLrapolaLed up Lo 2014/13,
governmenL would have falled Lo spend close Lo 8293 bllllon of lLs LoLal lnfrasLrucLure over slx
8 203,6
8 177,8
8 208,3
8 207,4
8 213
8 219,7
8 41,8
8 82,6
8 18,4
8 48.3
8 49,8
8 31,4
8 0
8 30
8 100
8 130
8 200
8 230
8 300
2009/10 2010/11 2011/12 2012/13 2013/14 2014/13
8

(
8
l
l
l
l
o
n
s
)

Graph: 1he "truth dehc|t" |n |nfrastructure spend|ng (k b||||on)
AcLual spend 1he LruLh declL
11

flnanclal years. Some analysLs puL Lhe shorLfall ln budgeLed lnfrasLrucLure spend over Lhe lasL Lhree
years aL 24
7
.

A kMC analysls of Lhe governmenL's currenL lnfrasLrucLure spendlng versus Lhe nu LargeLs shows
LhaL Lhe lnfrasLrucLure spendlng gap wlll amounL Lo more Lhan 8297 bllllon beLween 2013/14 and
2013/16" and ls seL Lo sLeadlly lncrease Lo over 86 Lrllllon for Lhe perlod 2016/17 Lo 2029/30".

uaLa source: Mokgabudl, 1. (kMC SouLh Afrlca) 2013. SouLh Afrlca: lanned lnfrasLrucLure LxpendlLure And 1he nu: Mlnd 1he Cap.
Avallable. [Cnllne]: hLLp://www.mondaq.com/x/266734/governmenL+pollcy+publlc+flnance/lanned+lnfrasLrucLure+LxpendlLure+
And+1he+nu+Mlnd+1he+Cap (lebruary 2014).

1he uA's economlc plan shares Lhe nu's focus on Lhe lmporLance of expandlng and malnLalnlng Lhe
waLer, elecLrlclLy, road, rall, porL and communlcaLlons lnfrasLrucLure needed Lo faclllLaLe and
enhance economlc growLh. We also emphaslse Lhe lmporLance of breaklng up Lhe lnefflclenL sLaLe
monopolles LhaL conLrol crlLlcal economlc lnfrasLrucLure Lo reduce cosLs ln Lhe economy.

A naLlonal uA governmenL would work Lo lncrease acLual expendlLure on lnfrasLrucLure Lo 10 of
Cu. lor Lhe 2014/13 flnanclal year, our LargeLed lnfrasLrucLure spend would be around 8379 bllllon.
8282 bllllon of Lhls wlll be funded Lhrough Lhe flscus. 1hls represenLs 810.7 bllllon more Lhan
naLlonal 1reasury's budgeL for lnfrasLrucLure expendlLure ln 2014/13.

lnfrasLrucLure lnvesLmenL of 10 of Cu cannoL be funded solely Lhrough Lhe flscus. We propose
Lhe followlng approaches Lo ralslng Lhe flnance Lo brlng lnfrasLrucLure lnvesLmenL Lo Lhe deslred
level:

SLaLe-owned enLerprlses (SCLs) Lo sell off exlsLlng asseLs and Lhen relnvesL Lhe proceeds lnLo
new lnfrasLrucLure pro[ecLs.
LlsLlng varlous large lnfrasLrucLure pro[ecLs so as Lo ralse equlLy caplLal from Lhe flnanclal
markeLs. llow-Lhrough share schemes would be lmplemenLed where approprlaLe.

7
Mokgabudl, 1. (kMC SouLh Afrlca) 2013. SouLh Afrlca: lanned lnfrasLrucLure LxpendlLure And 1he nu: Mlnd 1he Cap. Avallable.
[Cnllne]:
hLLp://www.mondaq.com/x/266734/governmenL+pollcy+publlc+flnance/lanned+lnfrasLrucLure+LxpendlLure+And+1he+nu+Mlnd+1he+
Cap (lebruary 2014), 8urmelsLer, S. 2013. lnfrasLrucLure 2013: ShlfLlng lnfrasLrucLure from drawlng board Lo dellvery. Avallable. [Cnllne]:
hLLp://www.sklllsporLal.co.za/page/skllls-developmenL/1348213-ShlfLlng-lnfrasLrucLure-from-drawlng-board-Lo-dellvery#.uwh0xuC4xaM
(lebruary 2014).
0
200000
400000
600000
800000
1000000
1200000
2
0
1
3

2
0
1
4

2
0
1
3

2
0
1
6

2
0
1
7

2
0
1
8

2
0
1
9

2
0
2
0

2
0
2
1

2
0
2
2

2
0
2
3

2
0
2
4

2
0
2
3

2
0
2
6

2
0
2
7

2
0
2
8

2
0
2
9

2
0
3
0

k

m
|
|
|
|
o
n

Graph: Infrastructure ND spend|ng gap
12

LlsLlng SCLs Lhemselves, whereby a ma[orlLy of shares could be reLalned by Lhe sLaLe buL caplLal
could be ralsed on Lhe sale of Lhe remalnder on global markeLs.
Allowlng prlvaLe secLor players Lo bulld and manage lnfrasLrucLure asseLs. 1hls could lnclude
allowlng more lndependenL power producers (ls) ln Lhe energy secLor or permlLLlng mlnlng
houses Lo bulld Lhelr own rall connecLlons Lo Lhe porLs.

2.S. Carbon tax

Whlle Lhe uA ls commlLLed Lo bulldlng a green economy - and Lo Lhe global reducLlon of greenhouse
gas emlsslons - we wlll noL supporL any new Lax over Lhe Lhree-year budgeL cycle and unLll SouLh
Afrlca's economlc growLh recovers.

ln Lrylng Lo [usLlfy a carbon Lax naLlonal 1reasury avolds Lhe reallLy LhaL SouLh Afrlca ls responslble
for less Lhan 1.49 of global greenhouse gas emlsslons.
8
Clobally co-ordlnaLed acLlon Lo prlce carbon
would reduce global emlsslons, buL lndlvldual acLlon by SouLh Afrlca would have a negllglble lmpacL
on cllmaLe change.

Source: urban LarLh. 2012. 5ootb Aftlcoo cotboo 5oopsbot lebtooty 2012. Avolloble. jOolloe].
bttp.//otbooeottb.co.zo/system/flles/ptlvote/utbooX20ottb_5AX20cotbooX205oopsbot_0.pJf

1here ls no loglc Lo SouLh Afrlca belng a "flrsL-mover" amongsL developlng counLrles, especlally when
we are underperformlng economlcally relaLlve Lo Lhose counLrles. Whlle our economy grew aL under
2 lasL year, our emerglng peers llke Chlle and Malaysla grew aL more Lhan double Lhls raLe. We are
also faclng Lhe LhreaL of rlslng lnflaLlon.

8
urban LarLh 5ootb Aftlcoo cotboo 5oopsbot lebtooty 2012
bttp.//otbooeottb.co.zo/system/flles/ptlvote/utbooX20ottb_5AX20cotbooX205oopsbot_0.pJf

Chlna
23,42
uS
17,90
lndla
3,23
8ussla
3,14
!apan
3,62
SouLh Afrlca
1,49
8esL of Lhe World
41,18
Graph: contr|bunon to g|oba| em|ss|ons
13

8egardlng naLlonal 1reasury's proposed deslgn of Lhe carbon Lax, Lhey sLlll need Lo conflrm LhaL
oLher Laxes wlll be cuL Lo ensure LhaL Lhe carbon Lax wlll be flscally neuLral". 1helr sLaLed
commlLmenL Lo revenue-recycllng" ls noL sLrong enough. ln addlLlon, Lhey have noL conflrmed LhaL
Lhe proceeds from a carbon Lax would be rlng-fenced for spendlng on Lhe green economy

lurLhermore, because Lskom has an effecLlve monopoly on Lhe generaLlon of elecLrlclLy, and ls
rellanL on coal as a source of energy, Lhe cosL of any carbon Lax would slmply be passed on Lo Lhe
consumer who would be unable Lo access an alLernaLlve energy source. 1hls would puL furLher
pressure on already hlgh levels of lnflaLlon. naLlonal 1reasury should prlorlLlse openlng up Lhe
elecLrlclLy grld and Lhe promoLlon of lndependenL power producers ln Lhe renewable energy secLor

lnsLead of proposlng new Laxes, 1reasury should be uslng producL and Lechnlcal sLandards Lo drlve
lnvesLmenLs and lnnovaLlon ln producLs LhaL are less carbon lnLenslve. 1hey should also prlorlLlse
energy efflclency, make lL easler for companles Lo lnvesL ln new cleaner Lechnologles, and conslder
poslLlve lncenLlves Lo promoLe lower emlsslons.

ln addlLlon, 1reasury should be worklng Lo access lnLernaLlonal flnanclal resources Lo help us
LranslLlon Lo a low carbon economy. AL Lhe CC 17 cllmaLe change conference ln uecember 2011 we
slgned Lhe SouLh Afrlcan 8enewable lnlLlaLlve" (SA8l) wlLh 6 Luropean counLrles. 1hls agreemenL
comes wlLh slgnlflcanL flnanclal resources Lo help reduce our emlsslons buL governmenL has
apparenLly noL made any progress on securlng Lhe funds.

2.6. Lxchange contro|

1he AparLheld governmenL esLabllshed exchange conLrols ln Lhe face of poLenLlal forelgn and local
dls-lnvesLmenL ln 1961. Whlle Lhey have been relaxed ln parLs, many aspecLs remaln and acL as a
dlslncenLlve Lo venLure caplLal and sLarL-ups ln SouLh Afrlca.

Cur counLry ls one of only 33 LhaL have exchange conLrols, lncludlng 8urma, Cuba, Llbya, norLh
korea, venezuela, and Zlmbabwe. 1he very exlsLence of Lhese conLrols boggle Lhe mlnd of forelgn
lnvesLors who see Lhem as a slgnlflcanL voLe-of-no-confldence ln SouLh Afrlca, by SouLh Afrlca.

1he perverse resulLs of exchange conLrols are exLenslve and severe:

Many of our Lech sLarL-ups wlLh growLh poLenLlal lncorporaLe ln places llke uelaware or
Cuernsey because Lhelr lnLellecLual properLy ls deflned as caplLal" meanlng LhaL Lhelr cross-
border l LransacLlons are sub[ecL Lo 8eserve 8ank approval - anaLhema Lo lnvesLors,
1he so-called loop sLrucLure" prevenLs SouLh Afrlcans who have succeeded overseas from
lnvesLlng back lnLo local buslnesses,
Slmple lnLernaLlonal LransacLlons are mlred ln paperwork, puLLlng SouLh Afrlcan flrms aL a
slgnlflcanL dlsadvanLage Lo oLher companles, and
1he nexL generaLlon of Afrlcan companles seeklng Lo ralse caplLal sklp Lhe !ohannesburg SLock
Lxchange and head Lo Lhe old exchanges of Lurope lnsLead.

14

ConLrary Lo governmenL's defence of Lhe exchange conLrol reglme, lL was our well-deslgned banklng
regulaLlons LhaL proLecLed us from flrsL round effecLs of Lhe 2008 flnance crlsls. 1he volaLlllLy of our
currency ln recenL weeks shows LhaL Lhe 8and ls acLlvely Lraded by forelgners desplLe Lhe reglme.

lL ls Llme Lo scrap exchange conLrols once and for all.

2.7. 1ax rev|ew

1he uA shares Lhe concerns of many around Lhe world abouL Lhe rlse of base eroslon and proflL
shlfLlng" where Lax revenue declaraLlons can flow efforLlessly Lo Lhe lowesL Lax [urlsdlcLlon.

We wanL Lo see companles pay Lhelr falr share and we supporL Lhe work LhaL SA8S and naLlonal
1reasury do Lo slgn double LaxaLlon agreemenLs and work wlLh oLher [urlsdlcLlons Lo puL pressure on
Lax havens Lo llmlL lnLernaLlonal compeLlLlon for Lax revenue.

Cur concern ls LhaL Lhey neglecL Lo geL us properly lnLo Lhe real game of aLLracLlng buslness acLlvlLy,
and we hope Lhls ls whaL Lhe uavls 1ax CommlLLee wlll prlorlLlse ln Lhelr work on our Lax sysLem.

1he uA belleves an ldeologlcal shlfL ls needed ln our approach Lo Lax. Cur currenL approach could be
descrlbed as an admlnlsLraLlvely defenslve" menLallLy wlLh an annual sLruggle Lo close Lax loopholes
by addlng lncremenLally Lo Lhe large and growlng seL of Lax laws.

lnsLead, we should be adopLlng an approach LhaL prlorlLlses slmpllclLy, puLs falLh ln SA's
compeLlLlveness and ln Lhe beneflLs LhaL new lnvesLors brlng Lo our counLry.

We don'L have Lo be Lhe cheapesL Lax desLlnaLlon, [usL one LhaL ls good value ln Lerms of Lax, and
beLLer value ln Lerms of Lax admlnlsLraLlon. Cur goal should be Lo lower Lhe cosL of compllance unLll
lL ls cheaper Lo comply Lhan Lo cheaL.

Lowerlng compllance cosLs and slmpllfylng Lhe Lax code can help Lo lncrease Lhe number of
Laxpayers, buL beyond Lhls Lhere are really only Lwo ways Lo ralse more revenue: one, lncrease Lhe
Laxes you charge or Lwo, grow Lhe economy fasLer.

laced wlLh a revenue squeeze ln recenL years, naLlonal 1reasury has seemed Lo favour Lhe former
over Lhe laLLer, casLlng around for new Laxes Lo lmpose, lnsLead of adopLlng a bold reform agenda Lo
drlve growLh.

SouLh Afrlcans are already Laxed aL a hlgh raLe relaLlve Lo oLher emerglng markeLs. 1he proposed
carbon Laxes, local buslness Laxes or lncreases ln vA1, payroll or lncome Lax lncreases Lo fund Lhe
proposed naLlonal PealLh lnsurance scheme would leave us serlously overLaxed, ulLlmaLely
consLralnlng growLh and [ob creaLlon.

lnsLead, Lhe Lax proposals ln Lhls AlLernaLlve 8udgeL would be a flrsL sLep Lowards a lower cosL, more
compeLlLlve Lax reglme. We have confldence LhaL Lhe uavls 1ax CommlLLee wlll propose a
13

fundamenLal reform here and we look forward Lo worklng ln arllamenL Lo make sure Lhelr
recommendaLlons lead Lo a slmllar and more aLLracLlve Lax reglme ln SA.

2.8. I|sca| and monetary po||cy pr|nc|p|es

SusLalnable hlgh growLh can only occur ln a sLable and supporLlve macro-economlc envlronmenL.
Accordlngly, Lhe uA belleves ln geLLlng flscal and moneLary pollcy fundamenLals rlghL.

Lnsurlng LhaL spendlng and LaxaLlon lmpacLs falrly wlLhln, and across, generaLlons requlres LhaL:
l) 1he governmenL musL meeL lLs key LaxaLlon and spendlng prlorlLles whlle avoldlng an
unsusLalnable rlse ln Lhe burden of publlc debL, and
ll) CounLer-cycllcal flscal pollcy musL help Lo moderaLe shorL-Lerm flucLuaLlons ln growLh LhaL could
have an lmporLanL lmpacL on llvlng sLandards.

1he followlng seL of complemenLary flscal and moneLary proposlLlons glve effecL Lo Lhese prlnclples:

8ottow ooly to lovest
Cver Lhe course of Lhe buslness cycle, governmenL should borrow only Lo lnvesL and noL Lo fund
currenL spendlng.

8tooJeo tbe tox bose losteoJ of locteosloq toxes
A naLlonal uA governmenL would focus Lax pollcy on achlevlng rapld economlc growLh and
lncenLlvlslng lnvesLmenL. SouLh Afrlcan famllles and buslnesses musL percelve LhaL Lhey are geLLlng
value for Lhelr Lax conLrlbuLlons. 8aLher Lhan ralslng Laxes, we belleve LhaL Lhe focus should be on
lncreaslng Lhe Lax base and lnLroduclng Lax lncenLlves Lo lncenLlvlse [ob-creaLlng lnvesLmenL.

kloq-feoce cettolo toxes
1he uA belleves LhaL cerLaln Laxes should be rlng-fenced Lo ensure LhaL Laxpayers geL whaL Lhey pay
for. Cur opposlLlon Lo Lhe Lolllng of commuLer LransporL rouLes ls based on Lhe bellef LhaL road
lnfrasLrucLure should be funded, aL leasL ln parL, Lhrough Lhe fuel levy and local llcense fees.

keep mooey lo tbe pockets of cltlzeos
More money ln Lhe pockeLs of clLlzens and buslnesses can enhance spendlng, boosL growLh, creaLe
[obs and ulLlmaLely lncrease conLrlbuLlons Lo Lhe flscus. 1he uA wlll keep corporaLe and lndlvldual
Lax raLes as low as ls flnanclally vlable.

5tteomlloe qovetomeot
resldenL !acob Zuma runs one of Lhe largesL cablneLs ln SouLh Afrlca's pollLlcal hlsLory. 1he uA
belleves LhaL governmenL deparLmenLs could be sLreamllned Lo conLaln publlc spendlng and
promoLe efflclenL governmenL.

kesttoctote tbe vettlcol Jlvlsloo of teveooe
ln naLlonal governmenL, Lhe uA wlll speed up Lhe gradual approprlaLlon of naLlonal revenue away
from naLlonal governmenL and Lowards local governmenL where mosL of Lhe servlce dellvery Lakes
16

place. ln Lhe 2013/14 budgeL, 9 of Lhe LoLal budgeL was Lransferred Lo munlclpallLles. 1hls should
lncrease over Llme.

5oppott loflotloo totqetloq
1he uA supporLs Lhe lnflaLlon-LargeLlng framework lmplemenLed by a sLrong, lndependenL 8eserve
8ank. We belleve LhaL lnflaLlon hurLs Lhe pooresL mosL, and LhaL boLh hlgh and erraLlc lnflaLlon levels
are deLrlmenLal Lo Lhe economy's ablllLy Lo generaLe wealLh for all.

ln naLlonal governmenL, Lhe uA would malnLaln a sLrong focus on prlce sLablllLy. Whlle Lhe 8eserve
8ank should make use of a varleLy of Lools Lo achleve prlce sLablllLy, lnLeresL raLes should be
consldered lLs mosL lmporLanL mechanlsm. 1he bank should acL ln a flexlble exchange raLe reglme,
wlLh acLlve parLlclpaLlon ln currency markeLs only Lo bulld Lhe counLry's forelgn exchange reserves,
wlLh no ob[ecLlve of lnfluenclng exchange raLes.

3. Deta||ed proposa|s

1hls secLlon ouLllnes speclflc pollcy proposals from Lhe uA's pollcy seL LhaL wlll have an lmpacL on
governmenL revenue and expendlLure.

3.1. rov|de |eadersh|p on the economy

1be qovetomeot most ptovlJe cettoloty oo lts vlsloo fot tbe ecooomy, tbe pollcy lt loteoJs to
lmplemeot to teollse tbot vlsloo, ooJ lts commltmeot to eosotloq tbot tbe ecooomy setves otJlooty
people ooJ oot ooly tbose coooecteJ to tbe qovetoloq potty.

1. A s|ng|e p|an on the economy - Scrap the Department of Lconom|c Deve|opment

ConLradlcLlons ln Lhe macro-economlc plaLforms proposed by Lhe ueparLmenL of Lconomlc
uevelopmenL, naLlonal 1reasury and naLlonal lannlng Commlsslon creaLe uncerLalnLy abouL SouLh
Afrlca's economlc pollcy dlrecLlon and has a negaLlve lmpacL on lnvesLmenL. 1he ueparLmenL of
Lconomlc uevelopmenL should be dlsbanded. 8udgeLs wlll need Lo be reLalned for enLlLles recelvlng
fundlng from Lhe ueparLmenL (lncludlng Lhe CompeLlLlon Commlsslon, CompeLlLlon 1rlbunal and
Small LnLerprlse llnance Agency).
1otol sovloq. k169 mlllloo

2. Strengthen |oca| government

upgrade Lhe quallLy of managemenL ln local governmenL by acLlvely recrulLlng and employlng
sulLably quallfled managers. lnLenslve managemenL Lralnlng wlll be provlded Lo exlsLlng sLaff
members ln parLnershlp wlLh leadlng buslness schools around Lhe counLry.
AJJltloool expeoJltote. k11 mlllloo

3.2. Manage pub||c money better

17

5teps most be tokeo to combot qovetomeot cottoptloo ooJ to moke sote tbot qovetomeot speoJloq
Jeclsloos ote tokeo lo tbe best lotetest of oll 5ootb Aftlcoos.

cotb speoJloq

3. Sca|e back the government wage b|||

LlmlL Lhe LoLal lncrease ln Lhe governmenL wage blll Lo Lhe lnflaLlon raLe, cuL back on salarles Lo
superfluous deparLmenLs and llnk salarles Lo performance.
1otol sovloqs. k987 mlllloo

4. L|m|t |eakages from the pub||c purse through corrupt|on and poor f|nanc|a| management

Make slgnlflcanL progress Lowards reduclng lnapproprlaLe spendlng and corrupL acLlvlLles ln Lhe
publlc secLor by esLabllshlng an effecLlve anLl-corrupLlon sysLem.
1otol sovloqs. k10 blllloo

5. New M|n|ster|a| nandbook

SlgnlflcanL savlngs can also be achleved by curblng spendlng on luxurles by cablneL mlnlsLers.

resldenL Zuma promlsed a revlew of Lhe noLorlous MlnlsLerlal handbook !uly 2009. A revlewed
handbook ls yeL Lo be presenLed. 1hls handbook ls rouLlnely used Lo [usLlfy expendlLure on
exLravagances for MlnlsLers - such as luxurlous cars, upgrades Lo mlnlsLerlal manslons, flrsL class
Lravel and flve-sLar hoLel sLays. We belleve LhaL slgnlflcanL savlngs can be effecLed by adopLlng a
naLlonal verslon of Lhe no-frllls handbook for Lhe provlnclal cablneL adopLed ln Lhe WesLern Cape ln
2011.

6. Cutsource non-core funct|ons

Pave governmenL deparLmenLs ouLsource non-core funcLlons such as caLerlng and cleanlng servlces
Lo prlvaLe conLracLors.

7. Introduce Act|v|ty-8ased Cost|ng

lnLroduce AcLlvlLy-8ased CosLlng (A8C) as a plloL pro[ecL ln key governmenL deparLmenLs Lo reduce
cosLs and wasLage, and promoLe efflclency. 1hls wlll promoLe efflclency and reduce wasLe by
requlrlng LhaL lnlLlaLlves underLaken and pollcles approved ln Lhese deparLmenLs be Lhoroughly
cosLed before Lhey may be approved.

18

8. Lff|c|ency sav|ng

ln lLs flrsL year ln governmenL ln Lhe WesLern Cape, Lhe uA broughL down cosLs for goods and
servlces by 3.27. 1he same can be achleved ln oLher provlnces and ln naLlonal governmenL.
1otol sovloq. k5.8 blllloo

llmltloq tbe oombet of qovetomeot Jepottmeots

A oombet of oew mlolsttles ooJ Jepottmeots wete cteoteJ lo lteslJeot Iocob 2omos cobloet. 1bls
blooteJ cobloet bos olloweJ 2omo to oppeose foctloos lo tbe ANc, bot bos oot moJe tbe qovetomeot
mocbloety ooy mote tespooslve to tbe oeeJs of 5ootb Aftlcoos.

9. Sca|e back the Nat|ona| Department of ub||c Works

ulsband or slgnlflcanLly scale back Lhe naLlonal ueparLmenL of ubllc Works and asslgn Lhe
managemenL of naLlonal sLaLe asseLs and properLy leaslng Lo lndlvldual deparLmenLs and publlc
enLlLles.
1otol sovloqs. kJ79 mlllloo

10. D|sband the Department of Women, Ch||dren and eop|e w|th D|sab|||t|es

1he ueparLmenL of Women, Chlldren and eople wlLh ulsablllLles ls noL a dellvery-orlenLed
deparLmenL, buL has a mandaLe Lo supporL Lhe acLlvlLles of oLher deparLmenLs Lhrough coordlnaLlon,
research and creaLlng awareness of Lhe lssues affecLlng vulnerable groups. 1hls ueparLmenL has
been a fallure and has conslsLenLly overspenL on lLs own admlnlsLraLlon and sLaff cosLs, whllsL under-
spendlng on whaL should be lLs core programmes. 1hls deparLmenL should be dlsbanded.

11. Stream||ne the Department of Sport and kecreat|on

Many funcLlons of Lhls ueparLmenL can be beLLer performed by Lhe relevanL sporLlng bodles. 1hls
deparLmenL can be sLreamllned slgnlflcanLly.

12. Merge the Department of n|gher Lducat|on and the Department of Sc|ence and 1echno|ogy to
form an |ntegrated Innovat|on Department

Merge Lhe compeLencles of Lhe currenL MlnlsLrles of Plgher LducaLlon and Sclence & 1echnology.
1otol sovloqs. k1.J blllloo

13. Do away w|th d|str|ct mun|c|pa||t|es

uo away wlLh dlsLrlcL munlclpallLles and re-allocaLe Lhelr responslblllLles and funcLlons.

19

cot ot stteomlloe qovetomeot ptoqtommes

14. keduce the budget for the res|dency

under resldenL !acob Zuma, Lhe budgeL for Lhe resldency has lncreased by more LhaL 223,
balloonlng from 8432.3 mllllon ln 2008/09 Lo 81.13 bllllon budgeLed for 2014/13. ln Zuma's very flrsL
year ln offlce, Lhe presldency's budgeL lncreased by more Lhan 80. 1he uA belleves LhaL Lhe budgeL
for 2014/13 can be raLlonallsed by aL leasL 8231 mllllon.
1otol sovloqs. k2J1 mlllloo

15. D|sband the Nat|ona| outh Deve|opment Agency (NDA)

ulsband Lhe n?uA, whlch has become noLorlous for lLs enormous salarles, expenslve [unkeLs and
llmlLed lmpacL on youLh developmenL.

16. Stream||ne ent|t|es w|th|n the Department of Labour

SLreamllne enLlLles and programmes wlLhln Lhe ueparLmenL of Labour, lncludlng Lmployer Servlces,
roducLlvlLy SA, Work Seeker and ubllc LmploymenL Servlces.

17. Cut the VI secur|ty b|||

AllocaLlng subsLanLlal flnanclal resources Lo vl securlLy servlces for relaLlvely mlnor publlc
represenLaLlves, publlc offlclals and senlor members of Lhe AnC ls anoLher example of publlc money
belng used wlLhouL sufflclenL evldence of 'value added'. 1he uA esLlmaLes LhaL 8200 mllllon per
annum could be saved on Lhls budgeL lLem lf we cuL back on vl securlLy where credlble lnLelllgence
suggesLs currenL resource allocaLlon ls unnecessary.

18. keduce the budget for the Secret Serv|ce

8educe budgeL allocaLlon Lo Lhe SecreL Servlce.
1otol sovloqs. kJ.J blllloo

19. 8reak up SA8C |nto v|ab|e commerc|a| packages of rad|o and 1V stat|ons and se|| them v|a
pub||c auct|on

1he SA8C has Lhree 1v and 19 radlo sLaLlons LhaL, lf packaged senslbly, would be aLLracLlve for
prlvaLe lnvesLors. 1he uA would hold publlc hearlngs Lo deLermlne wheLher SouLh Afrlca needs a
publlc broadcasLer and, lf so, whaL form should lL Lake and how should lL be flnanced.

We conLend LhaL Lhe SA8C should be broken up lnLo varlous commerclal enLlLles and sold Lo Lhe
hlghesL bldder - wlLh Lhe lCASA and Lhe CompeLlLlon Commlsslon overseelng Lhe process Lo ensure a
dlverslLy of ownershlp and volces.
20

ubllc broadcasLlng needs (lncludlng publlc servlce announcemenLs and lnformaLlon sharlng) should
be meL Lhrough sLlpulaLlons ln llcense requlremenLs or publlc procuremenL of adverLlslng Llme/
space on prlvaLely owned and communlLy broadcasLers.

1he CovernmenL CommunlcaLlon lnformaLlon Servlce (CClS) can conLlnue Lo supporL communlLy
radlo and sLaLlons as broadcasL plaLforms by paylng for a percenLage of Lhelr broadcasLlng Llme Lo
dlssemlnaLe lnformaLlon from governmenL deparLmenLs and enLlLles, whlle leavlng Lhe sLaLlons free
Lo develop Lhelr own volce and conLenL appllcable Lo Lhelr audlences.
1otol oooool sovloq. k100 mlllloo

20. r|vat|se Sentech

Savlng followlng Lhe prlvaLlsaLlon of SenLech. 8eLaln a porLlon of lLs budgeL Lo subsldlse lnLerneL
lnfrasLrucLure ln under-servlced areas.
1otol sovloq. 685 mlllloo

21. Stream||ne tra|n|ng and research ent|t|es

SLreamllne enLlLles ln Lhe ueparLmenL of Plgher LducaLlon and 1ralnlng and Lhe ueparLmenL of
Sclence and 1echnology

22. D|sband SL1As

1he dlsbandmenL of SL1As wlll be a savlng Lo Lhe publlc purse and wlll prevenL Lhe channelllng of
scarce resources for skllls developmenL Lo enLlLles LhaL are lnefflclenL, overly bureaucraLlc and
unresponslve Lo Lhe acLual skllls needs of Lhe SouLh Afrlcan economy.
1otol sovloqs. k10.8 blllloo

23. ke-a||ocate fund|ng from the Nat|ona| kura| outh Serv|ces Corps
lnLegraLe Lhe naLlonal 8ural ?ouLh Servlces Corps wlLh LW and CommunlLy Works programmes
8elmburse employers Lo Lhe value of Lhe full amounL spenL on approved Lralnlng, lncludlng schemes
admlnlsLered by employers' assoclaLlons.

24. kev|ew and rat|ona||se South Afr|ca's m|ss|ons abroad

Many of SouLh Afrlca's 123 offlces serve no pollLlcal or economlc lnLeresL. A uA governmenL wlll
revlew Lhe conLlnued relevance of Lhe counLry's mlsslons abroad and raLlonallse mlsslons where
posslble.

21

25. Morator|um on expend|ture through Afr|can kena|ssance Iund

CuL Lransfers Lo Lhe Afrlcan 8enalssance lund.

26. r|son transfer and e|ectron|c tagg|ng

lasL-Lrack prlson Lransfer agreemenLs and lnLroduce elecLronlc Lagglng for parolees and
probaLloners, Lhus maklng lL posslble Lo lmpose a hlgher number of non-cusLodlal senLences.

wotkloq to cootolo costs

27. Lstab||sh a regu|atory |mpact assessment un|t

lormally esLabllsh a process of performlng assessmenL of Lhe lmpacL of regulaLory changes on key
naLlonal ob[ecLlves, lncludlng (l) Lhe cosL Lo Lhe flscus, (ll) Lhe lmpacL on [ob creaLlon, (lll) Lhe lmpacL
on buslness acLlvlLy, especlally SMMLs, and (lv) Lhe lmpacL on local and forelgn dlrecL lnvesLmenL.
AJJltloool expeoJltote. kJ0 mlllloo

28. 8oost resources for the ar||amentary 8udget Cff|ce

lully lmplemenL Lhe Money 8llls AmendmenL rocedure and 8elaLed MaLLers AcL, whlch was passed
ln 2009. 1he 8lll glves arllamenL Lhe power Lo amend Lhe budgeL afLer lL has been Labled and
provldes for Lhe creaLlon of a speclallsL arllamenLary 8udgeL Cfflce. A properly resourced offlce can
enhance Lhe overslghL role of arllamenL and provlde greaLer scope for promoLlng growLh-
enhanclng flscal pollcy.

3.3. D|rect |ncent|ves for [ob creat|on

lo tecoqoltloo of tbe lmpoct of blqb ooemploymeot oo oot ecooomlc qtowtb poteotlol, tbe
qovetomeot sboolJ Jltectly loceotlvlse job cteotloo by 5ootb Aftlcoo bosloesses.

29. Imp|ement a youth wage subs|dy programme

Comprehenslve lmplemenLaLlon of Lhe LmploymenL 1ax lncenLlve 8lll.

30. Upsca|e the LW

rogresslvely up-scale Lhe Lxpanded ubllc Works rogramme (LW) Lo employ 2.3 mllllon people
on a conLracL basls by 2023
9
.

9
1he naLlonal uevelopmenL lan has a LargeL Lo expand publlc employmenL programmes Lo 1 mllllon parLlclpanLs by 2013 and 2 mllllon
by 2020". lL ls argued LhaL Lhese programmes can be scaled down as Lhe number of formal- and lnformal-secLor [obs expands.
22

AJJltloool expeoJltote. k1 blllloo

31. Imp|ement government |nternsh|p programme

lnLroduce a comprehenslve governmenL lnLernshlp programme across all deparLmenLs, based on Lhe
hlghly successful WesLern Cape model.
AJJltloool expeoJltote. k1J0 mlllloo

3.4. A |abour reg|me that supports [ob creat|on

loboot leqlslotloo most soppott job cteotloo. 1be qovetomeot most eosote tbot loboot teqolotloos
ooJ ttoJe ooloo eoqoqemeots ocbleve o bolooce betweeo tbe ptotectloo of wotkets tlqbts ooJ tbe
oeeJ fot loboot motket flexlblllty lo soppott of job cteotloo.

32. Improv|ng the Labour Inspectorate

SLrengLhen lnspecLlon and LnforcemenL Servlces ln Lhe ueparLmenL of Labour Lo promoLe good
labour pracLlce and monlLor Lhe acLlvlLles of crlLlcal labour enLlLles, such as Lemporary employmenL
agencles.

3.S. Support sma|| bus|ness

1be qovetomeot most moke lt eoslet fot 5ootb Aftlcoos to stott ooJ qtow tbelt owo bosloesses.

33. Cpportun|ty Centres

A naLlonal uA governmenL would esLabllsh CpporLunlLy CenLres, whlch wlll serve as Cne-SLop-Shops
for small buslnesses and as a cenLral node for young [ob-seekers and enLrepreneurs Lo access
supporL. CpporLunlLy CenLres can moblllse fundlng from currenL SLuA offlces, 1husong CenLres and
!obs CenLres.

34. Cpportun|ty Cards

1he uA belleves ln sLreamllnlng and slmpllfylng governmenL's asslsLance for small buslnesses ln
accesslng credlL, Lralnlng, buslness advlsory servlces and buslness supporL servlces (such as
lnsurance and audlLlng).

1hls asslsLance can be provlded by rolllng ouL an CpporLunlLy Card as a slngle, lnLegraLed sysLem of
supporL for small buslness.

23

35. ked tape to red carpets

lnsLlLuLe 8ed 1ape 8educLlon unlLs across Lhe counLry (as per Lhe WesLern Cape model).

36. Cpportun|ty Voucher

ln naLlonal governmenL Lhe uA would lmplemenL an opporLunlLy voucher programme LhaL wlll
provlde fundlng Lo young adulLs who would llke Lo sLarL Lhelr own buslnesses or furLher Lhelr
educaLlon and skllls developmenL. 1he voucher would enLlLle Lhe graduaLe Lo (a) a parLlal subsldy of
unlverslLy or lL1 college fees, (b) seed caplLal Lo esLabllsh small or mlcro enLerprlses sub[ecL Lo a
well-formed buslness plan, or (c) a sLaLe guaranLee Lo cover loans exLended by commerclal banks Lo
graduaLes Lo esLabllsh small or mlcro enLerprlses sub[ecL Lo Lhe submlsslon of a baslc buslness plan
and oLher requlremenLs.

1he value of Lhe voucher wlll be up Lo a maxlmum of 86000, and would vary accordlng Lo Lhe reglon
where Lhe appllcanL ls applylng. 1he voucher would be pald over Lhree years, l.e. 82000 per year.
1he voucher would be lmplemenLed Lhrough Lhe CpporLunlLy Card sysLem.

37. 8us|ness Voucher

ln naLlonal governmenL, Lhe uA would plloL a 8uslness voucher SupporL rogramme (8vS) ln all
munlclpallLles LhaL wlll offer supporL servlces Lo small sLarL-ups, or small enLerprlses employlng
fewer Lhan flve people. 1he buslness voucher wlll be exchangeable for a buslness skllls,
managemenL, flnanclal skllls or relevanL Lechnlcal programme aL an accredlLed buslness skllls
provlder. 8eclplenLs wlll have Lo be over Lhe age of 21, produce proof of resldence and musL presenL
a feaslble buslness plan.

1o slmpllfy access and lncrease Lake-up of Lhe supporL offered, Lhls voucher could also be
lmplemenLed Lhrough Lhe CpporLunlLy Card sysLem, or local governmenL programmes llnklng ln Lo
Lhe card sysLem.

38. L-procurement system

1he uA would lmplemenL an e-rocuremenL sysLem LhaL would make lL easler for small enLlLles Lo
reglsLer as suppllers. 1he sysLem could allow small buslness Lo upload all Lhe cerLlflcaLes and
supporLlng documenLs LhaL musL accompany governmenL Lenders once a year and Lo submlL Lenders
Lhrough on onllne sysLem.

39. Nat|ona| Venture Cap|ta| Iund

24

LsLabllsh a naLlonal venLure CaplLal lund Lo provlde lnvesLmenL caplLal Lo sLarL-ups and early-sLage
buslnesses. 1he lund wlll alm Lo supporL lnnovaLlon ln sLarL-ups and SMMLs.

40. Lntrepreneursh|p compet|t|on
uL fundlng behlnd a naLlonal enLrepreneurshlp compeLlLlon.

41. M|cro-entrepreneur survey

lnlLlaLe a comprehenslve survey of Lhe lnformal secLor LhaL can be used by an lnLer-deparLmenLal
Lask Leam Lo develop a sLraLegy Lo asslsL lnformal buslness owners and Lhelr employees.

42. Awareness programmes on support ava||ab|e to sma|| bus|ness owners

Many buslness owners are noL aware of Lhe supporL avallable Lo Lhem and Lhe varlous supporL
programmes run by Lhe governmenL. A 2010 sLudy by Lhe llnmark 1rusL showed LhaL 74.3 of small
buslness owners were noL aware of avallable supporL. A uA governmenL would lnvesL ln awareness
programmes Lo lncrease Lake-up of supporL programmes.

43. Cash f|ow ass|stance for sma|| bus|nesses

lnLroduce a Lhree-year Lax loss carry-back for buslnesses wlLh Lurnover of less Lhan 83m. 1hls would
allow a small cycllcal buslness Lo recoup a loss by seLLlng lL off agalnsL a prlor year's proflL. As an
elecLlve alLernaLlve, declare LhaL a Lax credlL LhaL derlves from an assessed loss (whlch hasn'L been
clalmed as above) can be seL off agalnsL vA1 payable. 1hls wlll LermlnaLe aL Lhe commencemenL of
Lhe year followlng LhaL ln whlch Lhe Laxpayer's esLlmaLe of Lax for Lhe second provlslonal paymenL
exceeds 83m.
keveooe teJoctloo. k254 mlllloo

3.6. Ioster|ng econom|c |nc|us|on

1he governmenL should recognlse Lhe need Lo broaden parLlclpaLlon ln Lhe economy and help Lo
make lL easler for ouLslders Lo become owners, geL access Lo caplLal, and acLlvely parLlclpaLe ln Lhe
economy.

44. 1ax |ncent|ve for broad-based ownersh|p schemes

ln supporL of ownershlp Lransfers LhaL Lruly broadens economlc opporLunlLles we wlll provlde a Lax
lncenLlve for employee share ownershlp schemes. 1hls could lnvolve declarlng 30 of Lhe value of
shares awarded Lo quallfylng employees (preferably employees earnlng less Lhan an agreed
Lhreshold level) Lo be Lax deducLlble Lo Lhe employer.
loss of teveooe. kJ18 mlllloo
23

45. Lncourage sma|| bus|nesses to |nc|ude emp|oyees as shareho|ders

lnLroduce a bonus scheme for unllsLed flrms LhaL lnvolve employees ln ownershlp LransacLlons. 1hls
would apply Lo a maxlmum 830 000 bonus payable afLer flve years, and exclude dlrecLors,
shareholders and relaLlves of dlrecLors and shareholders, and any employee already parLlclpaLlng ln
a share scheme ln LhaL company. 1he bonus would be parLlally Lax-free, ln a raLlo LhaL ls llnked Lo
growLh ln an approprlaLe share lndex over Lhe flve-year perlod.

46. Make property cheaper for f|rst-t|me buyers

Abollsh all Lransfer duLles on land Lransfers for all flrsL-Llme, owner-occupled resldenLlal purchases of
under 82 mllllon.
keveooe teJoctloo. kJ2 mlllloo

47. ||ot the use of a hous|ng subs|dy voucher

lloL a programme of subsldy vouchers LhaL wlll allow reclplenLs greaLer flexlblllLy ln chooslng Lhe
low-cosL houslng opLlon LhaL besL sulLs Lhelr needs and lncenLlvlses self-help.

48. Serv|ced p|ots programme

8oll ouL a naLlon-wlde programme Lo dellver servlced ploLs Lo lmprove flexlblllLy ln houslng
provlslon, expedlLe servlce dellvery and encourage self-help.

49. Secur|ty of tenure |n former home|ands

lnlLlaLe processes and leglslaLlon Lo secure land rlghLs ln communal land areas.

50. Iarm equ|ty scheme fund

LsLabllsh a dedlcaLed fund Lo supporL larm LqulLy Schemes (lLS) ln whlch commerclal farmers sell
sLakes ln Lhelr farms Lo farm workers, elLher on an lndlvldual basls or Lo farm worker LrusLs.

51. 8udget |ncrease for |and reform

lncrease allocaLlon for Lhe land reform programme by 810 bllllon over Lhe nexL flve years, wlLh
speclflc emphasls on Lhe creaLlon of more effecLlve sLrucLures for posL-seLLlemenL supporL.
AJJltloool expeoJltote. k 1 blllloo

26

52. 8udget |ncrease for Land C|a|ms Comm|ss|on

AllocaLe addlLlonal resources Lo Lhe Land Clalms Commlsslon Lo allow beLLer monlLorlng of land
reform processes.

3.7. Create an enab||ng env|ronment for growth and |nvestment

8y lovestloq lo ecooomlc loftosttoctote ooJ, wbete posslble, btloqloq Jowo tbe cost bose lo tbe
ecooomy, tbe qovetomeot coo ptovlJe oo eooblloq eovltoomeot fot ecooomlc octlvlty, qtowtb ooJ
job cteotloo.

loftosttoctote fot qtowtb

53. Add|t|ona| |nvestment |n Informat|on and Commun|cat|ons 1echno|ogy (IC1)

CreaLer access Lo fasL, rellable and affordable lnLerneL and LelecommunlcaLlons servlces can add
slgnlflcanLly Lo SouLh Afrlca's growLh poLenLlal. 1he uA would lnvesL ln supporL for prlvaLe secLor
lnlLlaLlves Lo promoLe lC1 access - lncludlng a posslble Lax rebaLe for lnvesLmenL ln lC1
lnfrasLrucLure.
keveooe loss. kJ50 mlllloo lo tox bteoks fot lovestmeot

54. Add|t|ona| |nvestment |n fre|ght and commuter ra|| corr|dors

use lnfrasLrucLure lnvesLmenL Lo lmprove commerclal connecLlvlLy beLween reglons and ln urban
areas.

55. Increase the pub||c transport |nfrastructure budget

lncrease budgeL allocaLlons Lo Lhe publlc LransporL neLwork Lo beLLer connecL people wlLh
opporLunlLles (for example, by exLendlng 8apld 8us 1ranslL sysLems) and lncrease spendlng on
upgradlng lnformal seLLlemenLs.

56. ub||c 1ransport Inspectorate

CreaLe an lnspecLoraLe of ubllc 1ransporL LhaL wlll focus on conducLlng safeLy lnspecLlons of buses,
Lralns and Laxls.

57. koad ma|ntenance |nvestment

lnvesL an addlLlonal 890 bllllon over Lhe nexL slx years ln road malnLenance and lmprovemenL.
27


58. Invest |n water |nfrastructure

1he assurance of sufflclenL waLer for lndusLrlal developmenL and urban expanslon ls an essenLlal
prerequlslLe for growLh. ApproxlmaLely 40 of SouLh Afrlca's run-off flows lnLo Lhe ocean. A naLlonal
uA governmenL would allocaLe addlLlonal fundlng Lo waLer lnfrasLrucLure, and parLlcularly Lo Lhe
malnLenance and expanslon of waLer LreaLmenL faclllLles.

8tloqloq Jowo costs

59. 8reak|ng up state monopo||es
LxLraordlnary recelpLs ln Lhe alLernaLlve budgeL are very conservaLlvely based on 10 of neL asseL
value of Lhe relevanL companles. SLaLe-owned enLlLles we could earmark for parLlal or full
prlvaLlsaLlon lnclude:
8roadband lnfraco
SouLh Afrlcan osL Cfflce
SenLech
SouLh Afrlcan Alrways
A porLlon of Lskom's generaLlon capaclLy
SA8C unlLs
Alexkor
uenel
SAlCCL

60. Increase budget for Consumer Comm|ss|on

lncrease budgeL allocaLlon for Lhe naLlonal Consumer Commlsslon (nCC).

61. Increase budget for Compet|t|on Author|t|es

lncrease budgeL allocaLlon for Lhe CompeLlLlon Commlsslon and CompeLlLlon 1rlbunal Lo allow Lhem
Lo hlre more personnel, monlLor a broader range of economlc acLlvlLles and Lake on and hear a
greaLer number of cases.

3.8. Invest |n know|edge

1be qovetomeot most wotk to qlve mote people tbe eJocotloo ooJ skllls tbey oeeJ to qet o job ooJ
to soppott tbe kloJs of teseotcb ooJ Jevelopmeot tbot coo moke 5ootb Aftlco o wlooloq ootloo lo o
qlobollseJ koowleJqe ecooomy.
28

62. erformance |ncent|ves for schoo| management and teachers

erformance lncenLlves for school managers and Leachers based on learner ouLcomes.

63. Increase |nvestment |n teacher tra|n|ng and fund rov|ng master teachers

lmprove educaLlonal ouLcomes by lncreaslng lnvesLmenL ln ln-Lhe-classroom Lralnlng for Leachers
and Lhe deploymenL of speclallsL masLer Leachers Lo asslsL educaLors ln core sub[ecL areas.
AddlLlonal resource requlremenLs can be conLalned by lmplemenLlng Lhls programme ln co-
operaLlon wlLh Lhe prlvaLe secLor and non-governmenLal organlsaLlons.
AJJltloool expeoJltote. k 200 mlllloo

64. Nat|ona| bursary fund and top schoo|s bursary programme

lnvesLmenL ln bursarles for academlcally promlslng learners and a Lop schools bursary fund

65. Iund|ng for Grade k subs|d|es

lnvesLmenL ln bursarles for academlcally promlslng learners and a Lop schools bursary fund

66. Iund|ng for spec|a| needs schoo|s

Lnsure LhaL sLaLe-provlded schoollng opLlons are avallable for learners wlLh a range of speclal needs.
Where Lhese needs are noL meL, Lhe uA wlll allow for a subsldy sysLem Lo ensure LhaL Lhelr needs
can be meL Lhrough Lhe prlvaLe or nCC secLor.
AJJltloool expeoJltote. k4J0 mlllloo

67. Increase fund|ng for the Nat|ona| Student I|nanc|a| A|d Scheme

A naLlonal uA governmenL wlll gradually lncrease Lhe naLlonal SLudenL llnanclal Ald Scheme (nSlAS)
budgeL Lo 816 bllllon so LhaL no sLudenL ls denled furLher educaLlon because Lhey cannoL afford lL. ln
Lhls flnanclal year, an addlLlonal 81.6 bllllon wlll be allocaLed Lo nSlAS.
AJJltloool expeoJltote. k1.6 blllloo

68. ke|mburse emp|oyers' tra|n|ng costs

8elmburse employers Lo Lhe value of Lhe full amounL spenL on approved Lralnlng, lncludlng schemes
admlnlsLered by employers' assoclaLlons.

29

69. Government graduate recru|tment programme

uevelop a formal graduaLe recrulLmenL programme for Lhe publlc servlce, feaLurlng a baslc enLrance
examlnaLlon and compeLlLlve fasL-Lrack" sLream for promlslng sLudenLs.

70. kesearch A|||ance Venture Iund

lundlng could be allocaLed ln Lhe form of commerclallsed granLs Lo asslsL researchers Lo Lurn Lhelr
work lnLo markeLable producLs.

71. St|mu|at|ng |nnovat|on by support|ng the cost of patent|ng

rovlde supporL for Lhe cosL of paLenLlng for small enLerprlses.

72. Strengthen the tax |ncent|ves for k&D |nvestment

SLlmulaLe lnnovaLlon by resLorlng Lhe Lax lncenLlve for 8&u lnvesLmenL.
keveooe loss. k250 mlllloo

73. Strengthen the 1echno|ogy Innovat|on Agency

SLrengLhen Lhe capaclLy of Lhe 1echnology lnnovaLlon Agency Lo dellver on lLs mandaLe Lo provlde
flnanclal and non-flnanclal supporL for Lhe developmenL and commerclallsaLlon of compeLlLlve
Lechnology-based servlces and producLs.

74. Invest |n add|t|ona| capac|ty for med|ca| schoo|s

AllocaLe furLher fundlng Lo bulld capaclLy aL medlcal schools.

75. 1ra|n|ng for agr|cu|ture

AddlLlonal fundlng for Lralnlng and educaLlon ln Lhe agrlculLural secLor.

76. Invest |n agr|cu|tura| extens|on off|cers

AddlLlonal fundlng for agrlculLural exLenslon offlcers LhaL can provlde supporL Lo boLh commerclal
and emerglng farmers.

30

77. Add|t|ona| |nvestment |n IC1 for educat|on

A naLlonal uA governmenL would make addlLlonal fundlng avallable Lo encourage Lhe use of
lnformaLlon and CommunlcaLlons 1echnology (lC1) Lo lmprove access Lo and Lhe quallLy of
educaLlon. lundlng wlll be earmarked for, among oLhers, onllne supporL and an onllne porLal for
learners wlLh chaLrooms where Lhey can engage wlLh experlenced Leachers, Lhe developmenL of
lnLeracLlve e-LexLbooks, uLlllslng moblle Lechnology Lo lmprove access Lo LulLlon and explorlng
opLlons for e-scboolloq optloos Lo broaden access Lo educaLlon ln remoLe rural areas.

3.9. romote |nvestment and sav|ngs and reduce |ndebtedness

1o Jtlve ecooomlc qtowtb, otttoct lotetootloool lovestmeot ooJ belp 5ootb Aftlcoos to molotolo
poollty of llfe Jotloq tetltemeot ooJ Jlfflcolt tlmes, tbe qovetomeot sboolJ octlvely soppott botb
locteoseJ cotpotote lovestmeot ooJ petsoool sovloqs ooJ lovestmeot.

78. Corporate tax reg|me

8educe Lhe corporaLe Lax raLe Lo 27 wlLh a vlew Lo reduclng lL Lo 23 ln Lhe medlum Lerm.
keveooe teJoctloo. k6.8 blllloo

79. Abo||sh estate dut|es and donat|ons tax

Abollsh esLaLe duLles ln order Lo puL more money ln Lhe hands of SouLh Afrlcans Lo encourage
lnvesLmenL and sLlmulaLe economlc growLh.

80. Nat|ona| sav|ngs |otto

Savlngs can be encouraged Lhrough a naLlonal savlngs loLLo. 1hls could allow all SouLh Afrlcans who
open savlngs accounLs and make a speclfled monLhly conLrlbuLlon Lo a savlngs accounL Lo geL a free
enLry lnLo Lhe naLlonal loLLery.

81. I|nanc|a| ||teracy

arLner wlLh Lhe buslness secLor Lo offer flnanclal llLeracy and awareness Lralnlng - parLlcularly for
vulnerable workers ln Lhe mlnlng and agrlculLural secLor.

3.10. Increase trade

1o qtow tbe ecooomy, we most moke lt eoslet fot 5ootb Aftlcoo bosloesses to ttoJe wltb otbet
cooottles, especlolly oot Aftlcoo oelqbboots, so tbot tbese bosloesses coo qtow ooJ cteote jobs.

31

82. Lnhance trade d|p|omacy

8udgeL for addlLlonal measures Lo ensure LhaL SouLh Afrlca's ambassadors and hlgh commlssloners
are fully equlpped Lo promoLe Lhe counLry's economlc lnLeresLs abroad by esLabllshlng up-Lo-daLe
Lralnlng and selecLlon crlLerla.

83. Add|t|ona| consu|ates focused on trade

Lnhance SouLh Afrlca's sLraLeglc Lrade dlplomacy by (l) growlng Lhe counLry's presence ln, and
seeklng sLrong economlc Lles wlLh key emerglng economles ln Lhe LasL. AddlLlonal consulaLes wlll be
opened ln Macau (Chlna), Shenzhen (Chlna), 8angalore (lndla), Pyderabad (lndla), 8lo ue !anelro
(8razll), lsLanbul (1urkey), Sydney (AusLralla), Surabaya (lndonesla), and Cuadala[ara (Mexlco).

84. S|mp||fy customs procedures

LxpedlLe Lhe cusLoms clearance process by lnLroduclng an elecLronlc daLa lnLerchange sysLem, whlch
wlll allow users Lo submlL cusLoms declaraLlons onllne Lo Lhe SouLh Afrlcan cusLoms auLhorlLles.

85. South Afr|can Nat|ona| eace Corps

LsLabllsh a SouLh Afrlcan naLlonal eace Corps (SAnC) Lo provlde developmenL asslsLance Lo Lhe
conLlnenL.

3.11. Susta|nab|e deve|opment and the green economy

wbllst sttlvloq fot ecooomlc qtowtb ooJ job cteotloo, steps most be tokeo to mltlqote cllmote cbooqe
ooJ to eosote tbot 5ootb Aftlco becomes mote tesllleot to cllmote cbooqe. 1o eosote tbe sostolooble
ose of oototol tesootces, tbe qovetomeot coo (l) motlvote boosebolJs ooJ bosloesses to teJoce tbelt
eovltoomeotol lmpoct, (ll) stteoqtbeo teqolotloos to ptotect oototol tesootces, (lll) lovest lo wotet
loftosttoctote, ooJ (lv) moke fooJloq ovolloble fot cllmote cbooqe mltlqotloo ooJ oJoptotloo. lf
moooqeJ effectlvely, lovestmeot lo sostolooble Jevelopmeot coo coottlbote to qtowtb tbtooqb tbe
qteeo ecooomy.

86. numan resources for susta|nab|e deve|opment

Make fundlng avallable for addlLlonal envlronmenLal pracLlLloners, envlronmenLal managemenL
lnspecLors and wasLe managemenL enforcemenL offlclals.

87. kenewab|e energy

lncenLlves for prlvaLe households Lo lnsLall solar v and solar waLer geysers.
32


88. Combat |||ega| f|sh|ng

LsLabllsh formal funded parLnershlps would be esLabllshed wlLh coasLal munlclpallLles, communlLy-
based conservancy organlsaLlons and nCC's such 5AwA1cn Lo help combaL lllegal flshlng and Lo
asslsL wlLh communlLy-based prevenLlve compllance sLraLegles LhaL would focus on worklng wlLh
coasLal communlLles Lo reduce lllegal and lrresponslble flshlng.

89. Capac|ty-bu||d|ng for sma||-sca|e f|sher|es

AsslsL small-scale flsherles ln geLLlng Lhelr pracLlces ln order Lo quallfy for eco-labelllng for Lhelr
producLs.

90. Innovat|on and Green 1echno|og|es Iund

1he uA would creaLe a dedlcaLed lnnovaLlon and Creen 1echnologles lund under Lhe Marlne Llvlng
8esources lund Lo supporL: (l) 8esearch lnLo new commerclal flsherles, flshlng gear or flshlng
pracLlces, (ll) lnvesLmenLs lnLo greener and more efflclenL Lechnologles, (lll) 1he esLabllshmenL and
enLry lnLo new markeLs, (lv) 1he eco-labelllng of quallfylng flsherles, (v) 1he esLabllshmenL of green
aquaculLure farms.

91. 8u||d|ng ketrof|t Iund

lnLroduce a naLlonal 8ulldlng 8eLroflL lund Lo provlde brldglng flnance Lo prlvaLe secLor companles
Lo reLroflL large bulldlngs flnanced by Lhe savlngs on Lhelr elecLrlclLy bllls.

92. C||mate change adaptat|on fund

LsLabllsh a CllmaLe Change AdapLaLlon lund Lo asslsL famers ln adapLlng Lo Lhe changlng
LemperaLures and ralnfall paLLerns caused by global warmlng.

93. 1|me of use meters

1he value of elecLrlclLy as a commodlLy ls Lherefore deLermlned by Lhe Llme durlng whlch lL ls
uLlllsed. lL ls Lherefor lmporLanL LhaL our energy sysLem musL lncorporaLe Lhls elemenL Lo Lhe exLenL
LhaL household consumers are charged dlfferenLlal Larlffs based on Lhelr Llme of usage. 1o enable
such fee sLrucLure, Llme of use meLers musL be rolled ouL across Lhe counLry. 1hls wlll enable
consumers Lo plan Lhelr energy usage Lo reduce Lhelr peak demand. 1hls ls an lmporLanL flrsL sLep aL
drlvlng energy efflclency. 8 1 bllllon wlll lnlLlally be lnvesLed ln plloL pro[ecLs Lo have Lhese meLers
lnsLalled ln hlgh-usage areas.
33


3.12. keep South Afr|cans safe

1be pollce, lo pottoetsblp wltb commooltles ooJ clvll soclety otqoolsotloos, most wotk botJ to
pteveot ctlme befote lt occots. 5ootb Aftlco oeeJs o pollce setvlce tbot cltlzeos coo ttost ooJ tespect
ooJ tbot Joes oot pottlclpote lo vloleot ot ctlmlool octlvltles. 1be pollce most be ptopetly epolppeJ
ooJ well ttoloeJ ooJ tbey most be JlsclplloeJ ooJ cotloq eoooqb to keep commooltles sofe.

Oot jostlce system most bove tbe oecessoty loJepeoJeoce ooJ tesootces to eosote tbot tbose
ptosecoteJ tecelve o folt ooJ speeJy ttlol ooJ, lf foooJ qollty, ote opptoptlotely poolsbeJ.

Oot cottectloool setvlce system most keep tbose foooJ qollty of ctlmes secotely JetoloeJ ooJ most
offet effectlve tebobllltotloo to eosote tbot tbe level of ctlmloollty lo oot soclety ls teJoceJ ovet tlme.

5teps most olso be tokeo to moke tbe ctlmlool jostlce system mote tespooslve to tbe oeeJs of tbe
vlctlms of ctlme.

94. 8oost SAS numbers

Lmploy 4 000 addlLlonal SAS offlcers.

95. ke-estab||sh and support spec|a||sed un|ts to f|ght pr|or|ty cr|mes

1hls wlll lnclude Lhe furLher capaclLaLlon of Sexual Cffences unlLs and Lhe re-esLabllshmenL of urugs
and Cang unlLs and Marlne LnvlronmenLal unlLs wlLhln Lhe SouLh Afrlcan ollce Servlce, whlch have
proven Lo be successful ln curblng prlorlLy crlmes.

96. 1ra|n|ng

lncrease lnvesLmenL ln Lralnlng for pollce offlcers - wlLh a speclflc focus on deLecLlve Lralnlng.

97. erformance |ncent|ves

erformance lncenLlves for pollce servlce members.

98. Invest |n IC1 for the f|ght aga|nst cr|me

AddlLlonal lnvesLmenL ln lC1 for Lhe pollce and crlmlnal [usLlce sysLem.

34

99. More forens|c sc|ence |abs

8ulld an addlLlonal forenslc sclence laboraLory so LhaL Lhe followlng funcLlons are enhanced:
documenL analysls, chemlsLry LesLlng, blology sampllng and balllsLlcs LesLlng.

100. Schoo| safety

lnLroduce 'walklng buses' - supervlsed walklng groups for schoolchlldren where vlolenL crlme poses
a LhreaL Lo Lhe safeLy of learners, and deploy securlLy personnel Lo schools ln areas wlLh hlgh crlme
raLes.

101. V|ct|mL|nk serv|ce

LsLabllsh a 7-day-a-week, 24-hour vlcLlmLlnk servlce Lo asslsL people who have been raped or
assaulLed.

102. V|ct|m Support

uedlcaLe fundlng Lo a ulrecLoraLe for Lhe vlcLlms of Crlme and a vlcLlms of Crlme SupporL lund.
Money from flnes, penalLles and forfelLs can also be earmarked for Lhls purpose.

103. rosecutor tra|n|ng

lnvesL ln prosecuLor Lralnlng Lo lmprove convlcLlon raLes.

104. 8u||d more pr|sons

8ulld Lwo more prlsons (6 000 bed spaces) Lo ease over-crowdlng ln prlsons and enhance Lhe success
of rehablllLaLlon programmes.

105. 1ra|n|ng and deve|opment for traff|c off|cers

lnvesLmenL ln Lralnlng and capaclLy-bulldlng for Lrafflc offlcers.

106. Lstab||sh an ent|ty to research cyber secur|ty

1he uA ln governmenL would esLabllsh an lndependenL enLlLy (poLenLlally reporLlng dlrecLly Lo Lhe
resldency) Lo research cyber securlLy lssues and Lo develop pollcy and sLraLeglc plans Lo deal wlLh
Lhese lssues. 8epresenLaLlves ln Lhe enLlLy wlll lnclude experLs from Lhe prlvaLe secLor, legal flelds,
33

clvlc organlsaLlons, non-governmenL organlsaLlons (nCCs) and Lop governmenL offlclals (wlLh a
speclflc focus on represenLaLlves of Lhe SouLh Afrlcan ollce Servlce and ueparLmenL of !usLlce).

3.13. A comprehens|ve soc|a| safety net

1be uA belleves lo tbe powet of loJlvlJools to lmptove tbelt owo llves wbeo tbey ote qlveo tbe
oppottoolty to Jo so. All 5ootb Aftlcoos Jesetve o cbooce to llve o llfe tbot tbey voloe. uoemploymeot
pteveots people ftom llvloq o bettet llfe.

1o qlve oll 5ootb Aftlcoos o teol cbooce to lmptove tbelt llves, tbe most lmpottoot tespooslblllty of
qovetomeot ls to cteote oo eovltoomeot lo wblcb people coo lovest, bosloesses coo tbtlve, tbe
ecooomy coo qtow ooJ jobs coo be cteoteJ.

8ot mooy 5ootb Aftlcoos temolo excloJeJ ftom jobs ooJ oppottooltles. 1be uA ls sttooqly commltteJ
to ptovlJloq o soclol sofety oet to voloetoble cltlzeos ooJ ptotectloq oll 5ootb Aftlcoos ftom extteme
povetty ooJ booqet.

107. outh vo|unteers |n the SAS and SANDI

rovlde Lhe opporLunlLy for young SouLh Afrlcans Lo do volunLary servlce ln Lhe SouLh Afrlcan ollce
Servlce or SouLh Afrlcan naLlonal uefence lorce. 1he volunLeer programme would be avallable Lo
sLudenLs who have recenLly compleLed Crade 12. volunLeers would earn a small salary conslsLenL
wlLh whaL ls offered Lo employees ln an Lxpanded ubllc Works rogramme (LW). upon
compleLlon of Lhe programme, volunLeers would have Lhe opLlon of belng consldered for Lhe
permanenL pollce servlce or Lo quallfy for an opporLunlLy voucher Lo furLher Lhelr sLudles or sLarL a
small buslness.

108. 1ransport subs|d|es

1ransporL subsldles for pensloners and [ob-seekers.
AJJltloool expeoJltote. k1.5 blllloo

109. Support for peop|e w|th d|sab|||t|es

AddlLlonal resources for servlce cenLres for people wlLh dlsablllLles.

110. Address|ng shortages |n soc|a| workers

AllocaLe fundlng for speclallsed Lralnlng colleges for soclal workers and Lhe appolnLmenL of
addlLlonal soclal workers.

36

111. Iree bas|c e|ectr|c|ty

1he uA belleves LhaL lree 8aslc LlecLrlclLy should be lncreased Lo 100kwh a monLh. 1hls lncrease wlll
be phased ln over 3 years.

4. 8udget tab|e

CuLllne of uA budgeL proposals: 2014/13
(All fotecost flqotes ftom 9%:)4' ;%$' <4:+%# =,()>? "#&#%'%*#)

Macro-economlc lndlcaLors - 2014/13 (8b)

Cu CrowLh: 3.00
lnflaLlon raLe (Cl): 3.6
1oLal Cu 8 3 800

8udgeL SLrucLure - 2014/13 (8b)

8udgeL 8evenue: 8 1 076.6
of Cu: 28.3

8udgeL LxpendlLure: 8 1 230.3
of Cu: 32.4

8udgeL ueflclL: -8 133.7
of Cu: -4.0

kevenue (km):

@# %A)5#)*+ $&#%5B k 1 086 300

8udgeL roposals 2014/13

ltoposols wltb oo lmpoct oo ootloool teveooe (km)

ltoposols lo tespect of 8osloess -k 8 722
Cash flow asslsLance for small buslness -8 234
1ax lncenLlve for Lmployee Share Cwnershlp -8 318
Small buslness lncenLlve for Lmployee Share Cwnershlp -8 730
More CompeLlLlve CorporaLe 1ax 8eglme -8 6 800
CreaLer Lax lncenLlve for 8&u lnvesLmenL -8 230
1ax break for lnvesLlng ln 8roadband lnfrasLrucLure -8 330

ltoposols lo tespect of loJlvlJools -k 1 022
Make properLy cheaper for flrsL Llme buyers -8 32
Abollsh LsLaLe uuLy and uonaLlons 1ax -8 990

37

1ota| ord|nary revenue after tax proposa|s: k 1 076 SS6

Lxpend|ture (km):

@# %A)5#)*+ $&#%5B k 1 243 800

CD""B

Oppottooltles fot cost sovloqs (km)

9&*&+)*+ 64E()> ',*%? E%##%$ -k 28 865
LlmlL lncreases Lo Lhe governmenL wage blll -8 987
LlmlL losses due Lo corrupLlon and poor flnanclal managemenL -8 10 000
new MlnlsLerlal Pandbook -8 329
CuLsource non-core luncLlons -8 1 000
lnLroduce AcLlvlLy 8ased CosLlng -8 383
uLlllse unallocaLed lunds -8 9 910
Lfflclency savlng on goods and servlces -8 3 833

"#$%&'()*)*+ +,-%$*'%*# -k 2 762
ulsband Lhe ueparLmenL of Lconomlc uevelopmenL -8 169
Scale back Lhe ueparLmenL of ubllc Works -8 379
ulsband Lhe ueparLmenL of Women, Chlldren & eople wlLh ulsablllLles -8 219
SLreamllne Lhe ueparLmenL of SporLs & 8ecreaLlon -8 194
CreaLe an lnLegraLed lnnovaLlon ueparLmenL -8 1 302
uo away wlLh ulsLrlcL MunlclpallLles -8 300

34# ,$ 5#$%&'()*% +,-%$*'%*# 6$,+$&''%5 -k 18 661
8educe resldency 8udgeL -8 231
ulsband Lhe naLlonal ?ouLh uevelopmenL Agency -8 411
SLreamllne enLlLles and programmes ln Lhe ueparLmenL of Labour -8 100
CuL vl SecurlLy 8lll -8 211
8educe SecreL Servlce 8udgeL -8 3 304
Savlng due Lo prlvaLlsaLlon of SA8C asseLs -8 100
Savlng due Lo prlvaLlsaLlon of SenLech -8 683
SLreamllne enLlLles ln uoPL and uS1 -8 197
ulsband SL1As -8 10 833
8eallocaLe resources from naLlonal 8ural ?ouLh Servlces Corps -8 328
8aLlonallse SouLh Afrlca's mlsslons abroad -8 300
MoraLorlum on Lransfers Lo Lhe Afrlcan 8enalssance lund -8 302
lasL Lrack prlson Lransfer agreemenLs and lnLroduce elecLronlc Lagglng -8 1 037

=CF"B

AJJltloool expeoJltote (km)
C%&:%$5G)6 ,* #G% %>,*,'? k 11
SLrengLhen Local CovernmenL by Lralnlng for munlclpal managers 8 11
38

9&*&+)*+ 64E()> ',*%? E%##%$ k 45
LsLabllsh an 8lA unlL 8 30
8oosL resources for Lhe parllamenLary budgeL offlce 8 13

H)$%># )*>%*#)-%5 I,$ J,E >$%&#),* k 1 796
lmplemenL ?ouLh Wage Subsldy 8 667
upscale Lhe LW 8 1 000
lmplemenL CovernmenL lnLernshlp rogramme 8 130

@ (&E,4$ $%+)'% #G&# 5466,$#5 J,E >$%&#),* k 94
CapaclLaLlng Lhe labour lnspecLoraLe 8 94

"466,$#)*+ 5'&(( E45)*%55 :%-%(,6'%*# k 2 J67
CpporLunlLy CenLres 8 100
CpporLunlLy Cards 8 230
8ed 1ape Lo 8ed CarpeL unlLs 8 72
CpporLunlLy voucher 8 1 000
8uslness voucher 8 300
L-procuremenL 8 100
naLlonal venLure CaplLal lund 8 300
LnLrepreneurshlp CompeLlLlon 8 10
Mlcro-enLrepreneur Survey 8 10
Awareness programmes on supporL Lo small buslness 8 23

D'6,K%$'%*# #G$,4+G >&6)#&()5)*+ #G% 6,,$ k J 208
lloL: Pouslng Subsldy voucher 8 381
Servlced loLs rogrammes 8 600
lmprove securlLy of Lenure ln former homelands 8 300
larm LqulLy Scheme lund 8 600
8udgeL lncrease for Land 8eform 8 1 000
8udgeL lncrease for Land Clalms Commlsslon 8 127

L*I$&5#$4>#4$% I,$ +$,K#G k 9 J74
?ear 1 upgrade lC1 lnfrasLrucLure (read wlLh Lax rebaLe above) 8 330
8all corrldors 8 1 000
ubllc 1ransporL lnfrasLrucLure 8udgeL 8 1 000
ubllc 1ransporL lnspecLoraLe 8 24
8oad MalnLanance lnvesLmenL 8 6 000
AddlLlonal lnvesLmenL ln waLer lnfrasLrucLure 8 1 000

<$)*+)*+ :,K* >,5#5 k 124
lncreaslng budgeL for Consumer Commlsslon 8 69
lncrease budgeL for CompeLlLlon AuLhorlLles 8 33
39

D:4>&#),* &*: 5M)((5 :%-%(,6'%*# k 9 068
erformance lncenLlves for Leachers and school managemenL 8 41
1eacher Lralnlng and masLer Leacher programme 8 200
naLlonal 8ursary Scheme and 1op Schools 8ursarles 8 800
AddlLlonal fundlng for Crade 8 subsldles 8 360
AddlLlonal fundlng for speclal needs schools 8 430
AddlLlonal fundlng for nSlAS 8 1 600
8elmburse Lmployers' 1ralnlng CosLs 8 3 000
CovernmenL CraduaLe 8ecrulLmenL rogramme 8 111
8esearch Alllance venLure lund 8 119
SupporL Lowards Lhe cosL of paLenLlng 8 20
CapaclLy of Lhe 1echnology lnnovaLlon Agency 8 41
AddlLlonal capaclLy for medlcal schools 8 240
1ralnlng for agrlculLure 8 10
AgrlculLural exLenslon offlcers 8 44
lnvesLmenL ln soclally beneflclal lC1 producLs 8 32

=$,',#% )*-%5#'%*# &*: 5&-)*+5 &*: $%:4>% )*:%E#%:*%55 k 44
naLlonal savlngs loLLo 8 12
lnvesL ln flnanclal llLeracy and awareness 8 32

L*>$%&5% #$&:% k 5J5
lncrease u1l 1rade rogramme 8udgeL 8 33
AddlLlonal ConsulaLes 8 100
lnLroduce an elecLronlc lnLerchange sysLem for cusLoms procedures 8 200
Afrlcan eace Corps 8 200

"45#&)*&E(% N$,K#G k 2 620
lncrease human resources for susLalnable developmenL 8 28
lncenLlves for solar energy 8 300
CombaL lllegal flshlng 8 8
CapaclLy-bulldlng around eco-labelllng for small-scale flsherles 8 60
LsLabllsh lnnovaLlon and Creen 1echnologles lund 8 23
8ulldlng reLroflL fund 8 300
CllmaLe change adapLaLlon fund 8 300
1lme of use meLers 8 1 000

9&M)*+ >,''4*)#)%5 5&I% k 4 460
Lmploy 4 000 more SAS Cfflcers 8 480
Lxpand speclallsed unlLs Lo flghL prlorlLy crlmes 8 1 000
1ralnlng for pollce offlcers (focus on deLecLlves) 8 100
erformance lncenLlves 8 188
Crlme MonlLorlng l1 sysLem 8 76
More lorenslc Sclence Labs 8 800
40

School safeLy 8 146
vlcLlmLlnk Servlce 8 16
vlcLlm supporL 8 383
1ralnlng for prosecuLors 8 92
8ulld Lwo more prlsons 8 930
1ralnlng and developmenL for Lrafflc offlcers 8 27
LnLlLy Lo research cyber securlLy 8 200

@ 5,>)&( 5&I%#? *%# I,$ -4(*%$&E(% >)#)O%*5 k 2 998
?ouLh volunLeers ln Lhe SAS and SAnul 8 81
ubllc LransporL subsldles 8 1 300
AddlLlonal fundlng for supporL cenLres for people wlLh dlsablllLles 8 17
Address shorLages of soclal workers 8 300
lncrease free baslc elecLrlclLy 8 900

1ota| Lst|mated Lxpend|ture: k 1 230 2S6.8

8udget Def|c|t (km): -k 1S3 700.71

8udget Def|c|t as a of GD: -4.0

LsLlmaLed exlsLlng exLraordlnary paymenLs: 8 0
LsLlmaLed exlsLlng exLraordlnary recelpLs: 8 1 200

@::)#),*&( DA#$&,$:)*&$? $%>%)6#5 P%5#)'&#%: E&5%: ,* 5&(%Q()5#)*+ ,I 7RS ,I 5#&#% &55%#5TB k 10 152
8roadband lnfraco 8 134
SouLh Afrlcan osL Cfflce 8 233
SenLech 8 89
SAA / SA Lxpress 8 44
Lskom's generaLlon capaclLy 8 9 000
SA8C 8 133
Alexkor 8 40
uenel 8 146
SAlCCL 8 310

Net 8orrow|ng kequ|rement -k 142 348.3

Budgeting For Change and Jobs: 24 February 2014

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Budgeting For Change and Jobs: 24 February 2014

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8udget|ng for Change and Iobs

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