Analysis done by:
Godknows Giya (Senior Researcher)- AIDS Budget Unit
Vailet Mukotsanjera-Kowayi (Head)- AIDS Budget Unit
The 2010/11 fiscal budget announced by the Finance Minister, Pravin Gordhan was presented as part of a three year macro-economic policy and budget framework (2010/11-2012/13). The framework contains policy measures, programmes and projects planned for implementation during the period. It focused more on allocating resources to the line Ministries for their recurrent and capital outlays. The Minister also used the budget as a tool for the traditional thrust to stabilize the macroeconomic environment and stimulate economic growth in the country. In this respect, the budget focused on mitigating the effects of some of the underlying structural bottlenecks in the economy like high unemployment rate (25%) and one of the highest income inequalities in the world. Such bottlenecks require government resource redistribution through fiscus.
The underpinning of the 2010 budget is the state of the nation address announced by President Zuma on 11 February 2010 and the President’s Speech on the 2009 World AIDS day. The five focus areas highlighted in the State of the Nation Address are Education, Health, Rural development and land reform, Employment creation and fighting crime.
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