The Budget presented by Finance Minister Enoch Godongwana, the South African president wrote in his weekly bulletin, seeks to boost economic growth and alleviate the effects of poverty.
At a time of limited economic growth and restricted fiscal space, Ramaphosa added, the budget reflects the strategic priorities of the Government of National Unity: “inclusive growth and job creation, poverty reduction, combating the high cost of living, and building a capable, ethical, and proactive State.”
This year, he recalled, the value of these grants will increase above inflation.
The Social Hardship Relief Grant, which has played an important role in reducing poverty, he said, will also be extended for another year.
As part of improving access to healthcare, the President also indicated that increased funding will be allocated to community health centers and clinics, while investing in the recruitment and retention of health personnel, particularly doctors and nurses, and in the hiring of newly qualified doctors after completing their community service.
The budget also allocates substantial funds to other frontline services, such as teachers, the police, emergency personnel, and the Border Management Authority, Ramaphosa continued.
In the Education sector, the President added, budget allocations have been made to support teacher training, the expansion of mother tongue bilingual education, and early reading programs.
Funds have also been allocated for public employment programs and to support small businesses, he added. The Budget is characterized by 61 percent of its resources allocated to, among other things, health, education, housing, and social benefits.
However, he noted, maintaining social spending requires higher levels of economic growth, which is why the general budget allocation approved by Parliament last March allocates considerable resources to promote infrastructure development, which boosts growth and job creation.
Other measures that boost medium-term growth are also supported, such as incentive programs in the automotive, business process outsourcing, special economic zones, electric vehicle production, clothing and textiles, and other sectors, Ramaphosa added.
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