Budget Information Service responds to the 2001 Medium Term Budget Policy Statement
These include the economic growth projections of the medium term, the extent to which the principle of targeting social services at the poor is translating into practice, the inability to spend infrastructure allocations and the adequacy of allocations for HIV/AIDS. [...] Section 2: Description and Interpretation of what the MTBPS said 2.1 The revised macroeconomic framework for 2002/03-2004/05 Two key points about the macroeconomic scenario of the MTBPS: • First, the MTBPS acknowledges that the rate and type of growth over the recent past has not managed to reduce poverty via employment creation. [...] This favourable framework in the face of low growth prospects is a product of prudent fiscal policy over the last couple of years; the associated ability of the economy to generate lower real interest rates and the efficiency of SARS. [...] 1 Except in the case of the comparison of real per capita social service expenditure for 1996/97 as compared to 2001/02 we have used the GDP inflation figures provided in the MTBPS in Table 2.4 to deflate and 2001/02 as the base year for deflation. [...] 4 Changes to the division of revenue between national, provincial and local government Two favourable changes to the division of revenue need to be highlighted in light of the need for more action in provision of social security, to mitigate HIV/AIDS at the provincial level and improve infrastructure and basic services at the local level.