The national budget for 2009/10 could be Finance Minister Trevor Manuel’s toughest since 1996, but it could also be his last, according Colen Garrow, the chief economist from Brait.
”It is widely speculated that the platform on which he delivers the Medium Term Budget Policy Statement sometime around October this year, could be the opportunity to hand over the reins of a ministry he has controlled for the past fourteen years,” says Garrow.
He said that Manuel does so far have an exemplary fiscal record.
Clear plan
Consultancy Frost & Sullivan said the Manuel must outline a clear spending plan for addressing the state of the public healthcare system.
”Although there are very specific items and issues that need addressing, we feel that the focus should be on improving the quality of care in the public sector, rather than trying to overregulate the private sector,” said Peter Breitenbach, the head of Frost & Sullivan’s African healthcare practice, on Tuesday.
”Despite claims to the contrary, the state of the nation’s health is worse now than it was 15 years ago,” he said.
According to Breitenbach, while Health Minister Barbara Hogan’s first few months as minister have been promising, the government urgently needed to address the lack of capacity in healthcare services.
This meant increased spending on the recruitment and training of healthcare workers, and offering higher wages to retain key staff.
”As this also affects the private sector, Manuel should set aside funding for programmes in which government can engage with the private sector to address the need for skills.”
Breitenbach said there was also a desperate need for improved provision of primary healthcare services.
”Government claims to have the largest ARV [antiretroviral] programme in the world, but there are still massive gaps in provision and this extends to maternal and child health, as well as infectious disease control and management,” he said.
According to Frost & Sullivan, Manuel should also address issues of energy, water infrastructure, information and communication technologies (ICT).
Turning to Eskom, the consultancy said that while Manuel didn’t need to announce any new contributions to the power-utility’s expansion programme, it would like to see the minister deliver a very clear message that government would honour any of the utility’s debts.
”In the current financial climate it’s obviously going to be very difficult for government to invest large sums into Eskom’s expansion programme,” Frost & Sullivan energy industry manager Cornelis van der
Waal said.
”However, with a stronger credit rating, Eskom will be able to obtain loans at a better
Manuel has been finance minister since 1996 and is one of the longest-serving finance ministers in the world. South Africa reported its first budget surplus in 2007 under Manuel. – I-Net Bridge, Sapa