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Title: Economic%20Development%20Strategic%20Plan%20and%20Budget


1
Economic Development Strategic Plan and Budget
  • Presentation to the
  • Select Committee on Economic Development
  • 13 April 2010

2
Presentation outline
  • Background
  • Medium Term Strategic Plan
  • Aim and Focus of EDD
  • Programmes, sub-programmes, outputs and
    activities
  • A phased approach to implementation
  • Medium Term Expenditure Framework
  • Budget per programme and sub-programme
  • Concluding remarks

2
3
A new department
  • EDD established following the announcement of the
    new Cabinet
  • President Zuma on 10 May 2009
  • A new Department of Economic Development has
    been established to focus on economic
    policy-making.
  • President Zuma SONA 3 June 2009
  • The creation of decent work will be at the
    centre of our economic policies
  • President Zuma in Budget Vote speech 24 June
    2009
  • The Economic Development portfolio will have a
    strong domestic focus and will address, amongst
    others, matters of macro and micro-economic
    development planning.

3
4
Medium Term Strategic Plan
4
5
Aim of EDD
  • The aim of the Economic Development Department is
    to promote economic development through
    participatory, coherent and coordinated economic
    policy and planning for the benefit of all South
    Africans
  • Coordinate economic development contributions of
    government departments, state entities and civil
    society
  • Contribute to coherence between government
    objectives and the public sector economic
    policies and plans
  • Promote governments ability to achieve its goals
    of advancing development with decent work
    opportunities

5
6
Focus of EDD
  • The Department will be responsible for
  • Administration (Programme 1)
  • Developing economic policy with a broad,
    cross-cutting focus so that macro and
    micro-economic policy reinforce each other and
    are both aligned to the electoral mandate
    (Programme 2)
  • Economic development planning and will work
    collegially with other departments to ensure
    coordination around a programme that places
    decent work at the centre of governments
    economic policies in order to secure better
    employment outcomes (Programme 3) and
  • Facilitating social dialogue as a means to
    address the economic development challenges
    facing society, build a common national vision
    and enhance partnerships in the workplace and in
    the broader society (Programme 4).

6
7
7
8
8
9
Economic Policy Development
9
10
10
11
Economic Planning and Coordination sub-programmes
11
12
Development Finance Institutions
12
13
Economic Regulatory Bodies
13
14
14
15
Economic Development and Dialogue sub-programmes
15
16
Provincial dimensions
  • Alignment National, provincial and local
    economic development to be better aligned and
    connected
  • Strong partnerships with provinces
  • Identify provincial dimension of the growth path,
    to address and transform the spatial inequities
    of the past
  • Develop support for distressed areas and regions
    (eg Dimbaza and Doringbaai)
  • Example 1 rural development and E Cape/Limpopo
  • Example 2 green economy and N Cape

16
17
Provincial dimensions
  • Corridor opportunities across provinces
  • Economic clusters across sectors and regions
  • Identify competitive advantages in each province
    and linkages between them
  • Build strategic relationships with SALGA and the
    metropolitan councils
  • Build coherence between national and provincial
    development agencies
  • Identify social partnership opportunities and
    social pacts at provincial and local levels

17
18
Provincial dimensions
  • Ensure equitable focus by development finance
    institutions on provinces
  • Micro-economic policy (eg small business
    development) need to take the spatial dimension
    into consideration
  • Host Policy Platforms in partnership with
    provinces (example of KZN and rural economic
    development)
  • Annual economic development conference to look at
    spatial dimensions
  • Create common database on economic development
    budgets

18
19
A phased approach
  • Strategic plan sets out the medium term framework
    for the EDD
  • Requires a phased, step-by-step implementation
    plan
  • Building an initial capacity in each programme
  • Outputs and activities phased in over the full
    MTEF period

19
20
Year 1 2010/11
  • Establish basic capacity in the 4 programmes
  • Basic policy work and planning in each of the
    areas
  • Limited number of sub-programmes created
    initially and progressively expanded
  • Key posts will be filled, particularly high-level
    ones

21
Targets for 2010/11
Indicator Programme 2010/11
Number of policy and analytical papers on economic policy challenges EPD 10
Number of policy platforms on economic policy challenges EPD 10
Number of engagements with provincial and/or local government EPC 10
Number of strategic engagements with development finance institutions and/or economic regulatory bodies EPC 6
Value of special financing facilitated for small businesses, targeted growth sectors and companies in distress EPC R2bn
Number of sector plans produced or reviewed EPC 5
Number of spatial plans produced or reviewed EPC 10
Number of interventions in relation to promoting economic development through leveraging state expenditure and procurement EPC 10
Social dialogue and capacity building engagements EDD 10
Number of economic development agreements (sectoral, workplace and national) facilitated with social partners EDD 10
21
22
Year 2 2011/12
  • Expanded operational staff capacity in each of
    the sub-programmes
  • Level of policy work and planning significantly
    enhanced would cover the full range of areas
    within the mandate of the department
  • Stronger focus on areas that have been prioritised

23
Targets for 2011/12
Indicator Programme 2011/12
Number of policy and analytical papers on economic policy challenges EPD 20
Number of policy platforms on economic policy challenges EPD 15
Number of engagements with provincial and/or local government EPC 20
Number of strategic engagements with development finance institutions and/or economic regulatory bodies EPC 12
Value of special financing facilitated for small businesses, targeted growth sectors and companies in distress EPC R3bn
Number of sector plans produced or reviewed EPC 8
Number of spatial plans produced or reviewed EPC 15
Number of interventions in relation to promoting economic development through leveraging state expenditure and procurement EPC 20
Social dialogue and capacity building engagements EDD 20
Number of economic development agreements (sectoral, workplace and national) facilitated with social partners EDD 20
23
24
Year 3 2012/13
  • Full staff capacity in each of the sub-programmes
  • Full range of policy and planning services set
    out in the Strategic Plan
  • Ramped-up targets across all programmes and
    sub-programmes

24
25
Targets for 2012/13
Indicator Programme 2012/13
Number of policy and analytical papers on economic policy challenges EPD 30
Number of policy platforms on economic policy challenges EPD 20
Number of engagements with provincial and/or local government EPC 30
Number of strategic engagements with development finance institutions and/or economic regulatory bodies EPC 12
Value of special financing facilitated for small businesses, targeted growth sectors and companies in distress EPC R5bn
Number of sector plans produced or reviewed EPC 10
Number of spatial plans produced or reviewed EPC 20
Number of interventions in relation to promoting economic development through leveraging state expenditure and procurement EPC 25
Social dialogue and capacity building engagements EDD 30
Number of economic development agreements (sectoral, workplace and national) facilitated with social partners EDD 30
25
26
Budget overview 2010/11
  • The Budget allocation is R418m, distributed as
    follows
  • R18,2 million for policy development work
  • R25,8 million for economic planning and
    coordination
  • R11,2 million for economic development and
    dialogue
  • R44,8 million for administration, the Ministry
    and capital expenditure
  • R152 million for small business funding, through
    transfers to Khula and SAMAF
  • R102 million for the competition authorities to
    strengthen their work and
  • R64 million for trade administration to ITAC.

26
27
Medium Term Expenditure Framework
27
28
EDD Budget per programme
(R million) 2010/11 2011/12 2012/13
Programme 1 Administration 44.8 56.0 61.3
Programme 2 Economic Policy Development 18.2 23.1 29.0
Programme 3 Economic Planning and Coordination 25.8 34.7 41.7
Programme 4 Economic Development and Dialogue 11.2 16.1 18.0
Sub-total 100.0 129.9 150.0
Transfers and subsidies (Programme 3) 318.6 364.4 370.3
Total 418.6 494.4 520.3
28
29
Programme 1 Administration (per sub-programme)
(R million) 2010/11 2011/12 2012/13
Ministry 16.3 20.3 21.8
Office of the DG 4.6 5.8 6.3
General Management Services 23.9 29.9 33.3
Total 44.8 56.0 61.3
29
30
Programme 2 Economic Policy Development (per
sub-programme)
(R million) 2010/11 2011/12 2012/13
Growth Path and Creation of Decent Work 4.8 5.7 7.5
Economic Policy 6.6 8.6 10.9
Broad-Based Black Economic Empowerment 4.7 6.2 7.4
Second Economy 2.1 2.7 3.3
Total 18.2 23.1 29.0
30
31
Programme 3 Economic Planning Coordination
(per sub-programme)
(R million) 2010/11 2011/12 2012/13
Spatial, Sector and Economic Planning 12.4 15.7 19.5
Financing and Procurement 3.8 5.4 6.3
Investment for Economic Development 156.6 171.4 177.0
Competitiveness and Trade for Decent Work 171.6 206.7 209.1
Total 344.4 399.1 411.9
31
32
Programme 3 Economic Planning Coordination
Detail of transfers and subsidies
(R million) 2010/11 2011/12 2012/13
Competition Commission 88.8 116.6 114.0
Competition Tribunal 13.6 15.2 15.6
International Trade Administration Commission (ITAC) 64.3 68.2 71.7
SA Micro-finance APEX Fund (SAMAF) 82.1 90.5 93.1
Khula Enterprise Finance Limited 69.7 73.9 75.9
Total 318.6 364.4 370.3
32
33
Programme 4 Economic Development and Dialogue
(per sub-programme)
(R million) 2010/11 2011/12 2012/13
National Social Dialogue and Strategic Frameworks 7.7 10.8 12.0
Sector and Workplace Social Dialogue 0.4 0.5 0.6
Capacity Building for Economic Development 1.7 2.5 3.0
Productivity, Entrepreneurship and Innovation 1.5 2.3 2.5
Total 11.2 16.1 18.0
33
34
Concluding remarks
  • Mandate and Framework constitute a bold economic
    vision
  • Strategic Plan is the focus of EDD contribution
    to realise this vision
  • Will be complemented by operational plans in each
    programme
  • The Budget as presented contains expenditure
    estimates for the medium term including transfer
    payments for the DFIs and ERBs
  • Excluding transfers the budget is R100m R130m
    R150m over the medium term
  • The immediate challenge for EDD will be the
    building of capacity to implement the
    departments programmes and sub-programmes

34
35
  • Thank you
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