2006 SA medium term budget speech
there sure has been a lot of negative publicity about sa recently and to tell you the truth i was dreading going back there when i went a couple of months ago. however i was pleasantly surprised with what's happening there. the people and the economy seemed vibrant... there was construction and building everywhere and every second person was having huge alterations / extentions done on their house (like hobson said to me: "i've never ever seen more than one crane in durban... now they're all over the show"). there does seem to be some genuine optimism there at the mo.
anyway, i have just read the 2006 medium term budget speech delivered by trevor manuel on 25 oct. it sure does sound like sa is going in the right direction. the speech can be found on:
http://www.finance.gov.za/documents/mtbps/2006/mtbps/speech.pdf
it is quite long though (16 pages) - so here are some of the higlights:
Economic overview
"South Africa is in the midst of its longest sustained economic expansion. Robust economic growth, supported by strong consumer spending and rising investor confidence, has created over one million jobs in the past three years. While unemployment remains our most pressing social and economic challenge, for the first time in a generation, the economy is creating jobs faster than new entrants are joining the labour force. Though it is too early to claim victory in the battle against unemployment, we can see how growth and development work together to reduce overty and improve livelihoods, how the policy choices we made a decade ago are bearing fruit."
"In celebrating the solid performance of our economy, we must continue to be mindful that there are still too many South Africans who go to bed hungry, too many who stare at the fragile walls of their shacks and far too many for whom disease makes life a daily struggle."
"In the past four years, our economy has expanded by an average of 4,2 per cent a year, with growth almost 5 per cent last year."
"The expansion of the social security system has contributed to poverty reduction and reduced vulnerability of many households. At the same time, real income tax relief for low and middle-income earners has raised disposable income. People have purchased more durable goods such as televisions, fridges, furniture and cars. We have seen an acceleration of consumer spending, an unprecedented rise in house prices - and steadily rising household debt."
Adjustment budget
"Government's initial equity in the proposed broadband telecommunications company, InfraCo... amounts to R1,4 billion."
"R372 million rolled over to the 2006/07 Housing vote will contribute to financing the N2 Gateway housing project."
"... in February this year, we tabled a budget proposing R472 billion in spending. Taking account of changes in the adjustments budgets, total spending in 2006/07 is projected to be R474 billion, up nearly R60 billion, or 14 per cent, in comparison with last year... Next year, expenditure will again increase by R60 billion."
Fiscal Policy
"Fiscal space provides government with an array of options: to spend more, to provide tax relief, to invest in infrastructure or to improve saving. More importantly, it provides a firm platform upon which we can reform our economy to ensure that we broaden opportunities to those still marginalised."
"Revenue growth is again expected to outpace spending growth next year. We anticipate a budget surplus of about half a per cent of GDP in 2007/08, putting the public finances on the strongest footing... that this House has ever contemplated."
Public spending
"The major priorities for additional spending are the following:
- Investment in stadiums and public transport to ensure a successful 2010 FIFA World Cup
- Stepped up investment in the built environment in the form of housing, electricity, water, sanitation and community facilities
- Contributing to improved economic efficiency through investment in roads, rail, research and development, energy and skills development
- Strengthening the criminal justice sector, with particular emphasis on visible policing and improving court case flow; and
- Improving the quality of education, health and welfare services through additional resources and targeted interventions to improve public administration.
"As a government, we are committed to the reduction of crime, and particularly violent crime. We are acutely aware of the damage that crime does to our social fabric and psyche, and it's impact on all South Africans, including the livelihoods of small business and the poor."
"We make provision for a further 10 000 people to be employed by the South African Police Service... We also make provision for more people to be employed in the legal system..."
Enhancing economic capacity
"Major infrastructure projects over the next three years include the Gautrain rapid rail link, King Shaka Airport, the de Hoop Dam on the Olifants River and the Vaal River augmentation project."
Improving the performance of the public sector
"This budget framework makes provision for increased salaries for certain categories of professions, especially in the health and social welfare sectors."
Conclusion:
"... the solid performance of our economy, in particular the creation of job opportunities and rising household incomes, allows us to turn the dreams of ordinary people into new realities. The expansion of infrastructure investment and the management of our public finances provide us with the capacity and resources to improve the services we provide to our people, to build hope and expand opportunities. ... invites... all South Africans, to embrace the challenges ahead as we prepare for 2010 and as we progressively broaden participation in a growing economy, with confidence in these shared commitments."
it was my 28th birthday last thursday. being 10 years since i turned 18, i decided to give it a good go to see whether i still had it in me. so ended up going out on wednesday (some turkish jol with a sheesha), thursday (restaurant in farringdon - thanks wiggy), friday (the grand - why???), and then had a potjie on sat at home.


















hobson, obviously realising he is a fight now, storms out unleashing a string of verbal body-shots, "the word is derived from the latin word pontifex, which literally means bridge-maker. it could therefore be construed to mean a bridge between god and humanity". wiggy, not willing to concede an inch, finshes the round strongly, and fires back with "it comes from the greek words xenos, meaning foreigner or stranger, and phobos, meaning fear".
it's getting vicious now... both linguists are scrapping to secure that vital edge. pontificate 18. xenophobia 24. hobson hits the canvas and goes down for the 8 count. that blow has visibly rocked hobson. is this the end?


i have uploaded pictures of our trip to barcelona. if any of you are interested - click on the barca link on the right hand side of the page under previous posts. the pictures are intermingled with the text (jon... just so you know - you don't have to read the text again.)






















