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South Africa: Using Public Expenditure as an Instrument for Job Creation
Source: Issued by: Mpumalanga Finance
Source Date: Friday, December 21, 2012
Focus: Electronic and Mobile Government, ICT for MDGs
Country: South Africa
Created: Dec 21, 2012

The study shows that the associated GDP (gross domestic product) multiplier for Mpumalanga Government expenditure was estimated at 1.51 during the 2010/11 financial year.
MEC Phosa said: β€œIn other words, for every R1 we have spent in this period, an additional 51 cents of economic activity was potentially stimulated.”
It was also estimated that 157 000 employment opportunities that were created could be associated with the procurement choices that the Mpumalanga Government made regarding allocation of expenditure in the same period.
The provincial government has spent R17.9 billion or 57.7% of the total appropriated budget of R30.9 billion as at the end of October 2012. This is show an improvement in expenditure compared to the same period in 2011/12.

MEC Phosa underscored the importance of utilising the Provincial Government budget as an instrument for making a difference in the lives of the people. She said delivery-oriented expenditure is also critical to address the triple challenges of unemployment, poverty and inequality in the Province.
For more information contact:
Letshela Jonas
Tel: 013 766 4323
Cell: 079 5000 154
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