1. Budget Information Service Response to the Medium-Term Budget Policy Statement 2003 “The Budget once again facilitates service delivery to poor people, but there is a long road ahead in realising socio-economic rights.”

2. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1. Importance of using the Budget as a tool for poverty reduction in the context of unemployment, revenue and growth trends in South Africa The focus of this presentation

3. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1. Importance of using the Budget as a tool for poverty reduction in the context of unemployment, revenue and growth trends in South Africa 2. How the MTBPS 2003 contributes to poverty reduction The focus of this presentation

4. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1. Importance of using the Budget as a tool for poverty reduction in the context of unemployment, revenue and growth trends in South Africa 2. How the MTBPS 2003 contributes to poverty reduction 3. The challenges arising from the MTBPS 2003 The focus of this presentation

5. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.MTBPS 2003 presented in the context of the continued poverty in South Africa Section 1: Importance of using the Budget as a tool for poverty reduction in current context

6. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.MTBPS 2003 presented in the context of the continued poverty in South Africa 2.Limited prospects for markets to reduce poverty via private sector employment-creation Section 1: Importance of using the Budget as a tool for poverty reduction in current context

7. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.MTBPS 2003 presented in the context of the continued poverty in South Africa 2.Limited prospects for markets to reduce poverty via private sector employment-creation 3.Raises importance of using the Budget to address poverty Section 1: Importance of using the Budget as a tool for poverty reduction in current context

8. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.MTBPS 2003 presented in the context of the continued poverty in South Africa 2.Limited prospects for markets to reduce poverty via private sector employment-creation 3.Raises importance of using the Budget to address poverty 4.Revenue position tighter than expected Section 1: Importance of using the Budget as a tool for poverty reduction in current context

9. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.Real increase in non-interest spending in the aggregate (including per capita) despite smaller envelope Section 2: Pro-poor strengths of MTBPS 2003

10. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 1.Real increase in non-interest spending in the aggregate (including per capita) despite smaller envelope 2.Priority given to service spending in sectors important for the poor Section 2: Pro-poor strengths of MTBPS 2003

11. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 2: Pro-poor strengths of MTBPS 2003 3. Priority given to spending on key poverty programmes : Basic service delivery at municipal level

12. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 2: Pro-poor strengths of MTBPS 2003 3. Priority given to spending on key poverty programmes : Basic service delivery at municipal level Expanded Public Works (EPW) programme

13. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 2: Pro-poor strengths of MTBPS 2003 3. Priority given to spending on key poverty programmes : Basic service delivery at municipal level Expanded Public Works (EPW) programme Extended Child Support Grant (CSG) and other social assistance programmes

14. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 2: Pro-poor strengths of MTBPS 2003 3. Priority given to spending on key poverty programmes : Basic service delivery at municipal level Expanded Public Works (EPW) programme Extended Child Support Grant (CSG) and other social assistance programmes HIV/AIDS activities + introduction of ARV treatment programme

15. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 2: Pro-poor strengths of MTBPS 2003 3. Priority given to spending on key poverty programmes : Basic service delivery at municipal level Expanded Public Works (EPW) programme Extended Child Support Grant (CSG) and other social assistance programmes HIV/AIDS activities + introduction of ARV treatment programme 4.Revenue division supports prioritisation of the poor

16. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Challenges and recommendations related to HIV/AIDS spending:  Ensuring that funds allocated via provincial equitable share are indeed spent on HIV/AIDS activities Section 3: Challenges arising from the MTBPS 2003

17. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Challenges and recommendations related to HIV/AIDS spending:  Ensuring that funds allocated via provincial equitable share are indeed spent on HIV/AIDS activities  Building capacity to spend funds allocated to HIV/AIDS Section 3: Challenges arising from the MTBPS 2003

18. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Challenges and recommendations related to HIV/AIDS spending:  Ensuring that funds allocated via provincial equitable share are indeed spent on HIV/AIDS activities  Building capacity to spend funds allocated to HIV/AIDS  More effective communication channels Section 3: Challenges arising from the MTBPS 2003

19. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Challenges and recommendations related to HIV/AIDS spending:  Ensuring that funds allocated via provincial equitable share are indeed spent on HIV/AIDS activities  Building capacity to spend funds allocated to HIV/AIDS  More effective communication channels  Improved tracking and monitoring Section 3: Challenges arising from the MTBPS 2003

20. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges relating to spending of funds allocated to basic services: Conflicting approaches to reforms in inter-governmental fiscal relations

21. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges relating to spending of funds allocated to basic services: Conflicting approaches to reforms in inter-governmental fiscal relations Municipal shortfalls in service planning capacity

22. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges relating to spending of funds allocated to basic services: Conflicting approaches to reforms in inter-governmental fiscal relations Municipal shortfalls in service planning capacity Development of institutional arrangements around service delivery

23. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges associated with the Expanded Public Works (EPW) programme: Effective co-ordination of the programme across sectors and departments

24. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges associated with the Expanded Public Works (EPW) programme: Effective co-ordination of the programme across sectors and departments Ensuring the spending of funds allocated to provinces and local government

25. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges associated with the Expanded Public Works (EPW) programme: Effective co-ordination of the programme across sectors and departments Ensuring the spending of funds allocated to provinces and local government Effective programme monitoring and evaluation systems

26. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges associated with the Expanded Public Works (EPW) programme: Effective co-ordination of the programme across sectors and departments Ensuring the spending of funds allocated to provinces and local government Effective programme monitoring and evaluation systems Overcoming inflated expectations of what EPW can do for the poor

27. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges & recommendations relating to the rapid roll-out of the CSG programme: Differential provincial performance and capacity

28. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges & recommendations relating to the rapid roll-out of the CSG programme: Differential provincial performance and capacity Need for better data on eligible children

29. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges & recommendations relating to the rapid roll-out of the CSG programme: Differential provincial performance and capacity Need for better data on eligible children How will National Social Agency assist roll-out?

30. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges & recommendations relating to the rapid roll-out of the CSG programme: Differential provincial performance and capacity Need for better data on eligible children How will National Social Agency assist roll-out? Providing birth certificates and identity books to promote access in rural areas

31. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Section 3: Challenges arising from the MTBPS 2003 Challenges & recommendations relating to the rapid roll-out of the CSG programme: Differential provincial performance and capacity Need for better data on eligible children How will National Social Agency assist roll-out? Providing birth certificates and identity books to promote access in rural areas Progress but… still the crucial task of further expanding social assistance

32. Budget Information Service Response to the Joint Budget Committee in Parliament on the MTBPS 2003 Thank you for your time