In response to these challenges the Provincial Government of the Western Cape has formulated the iKapa Elihlumayo strategy that consists of eight strategies in the areas of
- Economic Development,
- Human Resource Development,
- Infrastructure investment and
- Social Capital Formation and Poverty Reduction
- A Provincial Spatial Development Framework
- Improved provincial-local government interface;
- Improved Financial Management; and
- Building Internal Social and Human Capital and Improved Communication and Coordination.
One of the key pursuits of iKapa Elihlumayo is to find the correct mix between social and economic expenditure, not to trade off social services against economic services to favour the private sector, but rather to find the correct mix of services to best serve the needs of our people.
In addition to the strategies for the development of the Province, iKapa Elihlumayo we will also transform the Public Service by transforming the skills and culture of the organization
PARTNERSHIPS
Underpinning iKapa Elihlumayo is the People's Contract between government and the social partners. The role of the private sector is to provide optimal investment, employment opportunities and training and the role of labour is to assist us with the transformation of the public service as well as the labour market. The role of Civil Society will come into its own in our drive to improve social capital and reduce gangsterism, social division and the decay of the social fabric more broadly.
INCOME
Given the increased demand for services and limited revenue from national government we cannot continue to provide services at the same level. For this reason we need to find additional revenue. One such stream is the Fuel Levy that was recently approved by Provincial Cabinet.
In addition to the Fuel Levy and other sources of own revenue we also believe that the Provincial Equitable Share Formula, used to calculate transfers to provinces should be reviewed. The current formula only funds social service delivery and does not give sufficient recognition to the broader development role played by provinces.
EXPENDITURE
Over the next three years the Province will spend R 20,7 billion in the 2005/06 year, increasing to R 22,3 billion in 2006/07 and further increased to R 23,8 billion in 2007/08 budget.
In the short term R378 million is being allocated to the Province Adjustments Estimate, the main beneficiaries being Health, Education as well as Transport and Public Works, while the main contributor is Social Services and Poverty Alleviation.
| Category | 2005/06 R'000 | 2006/07 R'000 | 2007/08 R'000 | Accumulative | Percentage Share |
| Changes to baseline | Changes to baseline | Changes to baseline | |||
| SCF (incl EPWP) | 932 313 | 822 810 | 1 459 124 | 3 214 248 | 64.55 |
| HRD | 186 275 | 322 044 | 744 871 | 1 253 190 | 25.21 |
| SIP (Excl EPWP) | 7 719 | 10 754 | 339 958 | 358 431 | 7.21 |
| MEDS | (8 847) | (9 165) | 15 353 | (2 658) | -0.05 |
| Good governance | |||||
| PSDF, Financial governance, Provincial Local interface and coordination | 20 777 | 44 041 | 83 807 | 148 624 | 2.99 |
| TOTAL | 1 138 236 | 1 190 484 | 2 643 114 | 4 971 834 | 100 |
Over the medium term we will focus our funding on the Departments of Health and Education. This will enable us to implement the Human Resource Development Strategy as well as enable the dept of Health in Social Capital Formation.
SOCIAL CAPITAL FORMATION
An additional R3,2 billion is envisaged for Social Capital Formation, of which R1,3 billion goes to Health, with allocations of R932 million in 2005/06, R823 million in 2006/07 and R1,459 billion in 2007/08. These amounts including additional allocations for Social Security, salary and inflation adjustments; and a health service load adjustment. Funding is also provided to take over non-metro Primary Health Care clinics currently still provided by municipalities.
As part of the immediate adjustment tabled this week, Health receives an additional R190 million to fulfil their role in terms of iKapa Elihlumayo and more specifically the building of social capital. This will enable it to increase patient service loads, improve in conditions of service of employees, primary health care service and backlogs to municipalities. The Global Fund grant of R29,404 million will go strengthening and expanding of the Western Cape HIV and Aids prevention, treatment and care.
Allocations to other departments include R 161 million for Housing, infrastructure provisions, road maintenance, the upgrading of the Lentegeur and Mandalay stations to provide access for the disabled and security in support of the re-location of the Conradie Hospital to the Lentegeur Hospital, to upgrade eNatis (the electronic National Traffic Information System) computer technology at motor licensing registering authorities to improve service delivery, efficiency and create additional service points and for the replacement of Government motor vehicles.
HUMAN RESOURCE DEVELOPMENT
The HRD Strategy will ensure quality education and to equip learners find employment. Funding to the Health Department will enable us to reinforce our primary health care clinics. In addition we will address some of the primary causes of ill health through AIDS programmes, the prevention of Motor Vehicle Accidents and Gangsterism-related violence.
Another R 1,3 billion will be spent in support of the Human Resource Development Strategy. This is made up of R186 million in 2005/06, R322 million in 2006/07 and R745 million in 2007/08. This includes provision for inflation, rising learner numbers, additional allocations of ICS adjustment and pay progression for educators and the introduction of a learner tracking system.
In the short term, Education receives an additional R142 million for the improvements in conditions of service, notch increases in respect of educators since 1996, to accelerate infrastructure delivery in relation to additional mobile and conventional classrooms, as well as for maintenance and to promote fiscal discipline in the spirit of the Public Finance Management Act.
But we want to go further than providing good quality social services. We do not just want to alleviate poverty, but ensure jobs and prosperity. Our Economic Development, Infrastructure Investment and HRD Strategies will be finalised early in 2005. We will therefore spend more on the economic growth and job creation side in Budget 2005.
INFRASTRUCTURE INVESTMENT
The Strategic Infrastructure Plan (SIP) provides for the physical infrastructure that supports growth, labour market participation and general well being in the Province. The mandate for the Strategic Infrastructure Plan requires it to cover the public works, transport, housing, urban infrastructure and roads functions of the Departments of Housing and Transport and Public Works. An additional R358 million is provided for the Strategic Infrastructure Plan with allocations of R7,7 million in 2005/06, R10,8 million in 2006/07 and R340 million in 2007/08
ECONOMIC DEVELOPMENT
The Micro-Economic Development Strategy (MEDS) led by the Department of Economic Development and Tourism (DEDAT) and supported by the Department of Agriculture, guides and directs provincial involvement in private sector to ensure more appropriate levels of growth. New interventions are being designed to assist municipalities with the design of local economic development interventions. The Real Enterprise (RED DOOR) intervention will also be a flagship of the MEDS and provide integrated one-stop support to SMMEs. The allocations for the Micro-Economic Development Strategy will decline by R8,8 million in 2005/06, and R9,1 million in 2006/07. However, this will rise again by R15,3 million in 2007/08. The decreases are largely the result of a repayment of an advance in the current financial year. The departments of Agriculture and Economic Development and Tourism already benefited from large increase for land reform and sector development in 2003/04 and 2004/05.
Once the Micro-economic Development Strategy has been finalised we will make further allocations to this strategy, within the permutations of our resources. The plans for the establishment of a rapid response unit in Wesgro for the safeguarding of jobs that are under threat, as promised in last year's PGDS agreement, are also far advanced.
Farmers in the Western Cape will receive R9 million for drought relief and R10 million to Economic Development and Tourism to sustain jobs in the clothing industry.
PROVINCIAL SPATIAL DEVELOPMENT FRAMEWORK
Provincial Spatial Development Framework (PSDF) will be a spatial framework that maps growth/decline of economic sectors over time and guides private sector and provincial and municipal government expenditure. In general the PSDF follows the approach of the National Spatial Development Perspective. The spatial vision will be closely tied to the path of the agriculture sector to be developed as part of the MEDS.
An additional R149 million will be allocated to promote Good Governance, with R20,8 million allocated in 2005/06, R44 million in 2006/07 and R83 million in 2007/08. This will mainly fund Community Development Workers, financial system maintenance and to a lesser extent, Municipal Finance Management Act implementation and the establishment of the Youth Commission.
Improving Local-Provincial Government Interface requires the excellent co-operation and a well articulated common sense of purpose between the provincial and local government spheres on the one hand and between them and civil society and the business sector on the other. There are three aspects which this strategy addresses, namely the trends in local government budgets and how these can support iKapa Elihlumayo; the Powers and Functions dilemma and Co-operative governance.
THE WAY FORWARD
The next steps in the rollout of the iKapa Elihlumayo strategy is to finalise our lead strategies before the 2005 Budget is approved, so that we can spend on the key areas highlighted.
From this solid base it will be possible to introduce some of the desirable resource shifts identified in the lead strategies. These shifts will enable the delivery of services that will start bringing the Province closer to the vision of a 'Home for All'.
In addition Government must pursue the expansion of its revenue and resource base through campaigning for the revision of the Equitable Share formula, the implementation of the fuel levy and the redevelopment of provincial property.
Within one year Government has designed and started implementing iKapa Elihlumayo. It will continue to aggressively pursue its full implementation in the Provincial budget.
