Pretoria - Political parties have broadly supported Finance Minister Pravin Gordhan's Budget Speech, especially the focus on economic growth, job creation and poverty alleviation.
They commended the budget, saying it is youth oriented and has taken into consideration the millions of young South Africans despondent as a result of the socio-economic disparities still characterising the South African economy.
Gordhan announced during his Budget Speech that government would allocate R5 billion over three years, from April 2012, to encourage employers to take a chance on inexperienced workers.
This was in addition to the R9 billion job creation fund announced by President Jacob Zuma in his recent State of the Nation Address and other programmes, with a total value of more than R150 billion over the next three years.
"A wage subsidy will stimulate growth, create jobs and place our country on the right path. In the face of union obstinacy, the minister has made a courageous decision," the Democratic Alliance's Dion George said.
This view was also shared by the Young Communist League of South Africa (YCL), and SA Communist Party, which also welcomed the R14 billion allocated to Further Education and Training Colleges -- which were normally neglected in the past -- to assist thousands of students in need.
"The money will go a long way in realising our call as the YCL for the training of 100 000 artisans and training of young people in various technically driven jobs, which will enable them to be absorbed in the market," spokesperson Gugu Ndima said.
The SACP said the allocation towards education and skills development signals a dedicated focus on youth and addressing the challenges of unemployment facing the country and the youth specifically.
"Our country has a huge challenge in unlocking the problems encountered by many young people who are in transit between the schooling system and finding employment. In solving this crisis, we note the announcement of funding set aside for a youth employment subsidy," spokesperson Malesela Maleka said.
Gordhan also announced an unexpected tax relief for South Africans - giving tax payers a total of R8.1 billion in rebates after tax revenue came in higher at R672 billion. His revised personal income tax brackets and rebates will see those earning above R59 750 taxed. If you are over 65, you only start paying tax if you earn above R93 000 p/a.
He announced that R150 billion will be spent over the next three years to create jobs, among others.
African Christian Democratic Party MP and finance spokesperson, Steve Swart, welcomed the focus on economic growth, job creation and poverty alleviation as well as details on increased expenditure on infrastructure development, health, education, fighting crime and corruption.
"Minister Gordhan has not departed from government's prudent, yet expansionary and counter-cyclical fiscal policy. This should calm foreign investors, who require certainty and predictability on economic policy and who are jittery about fiscal deficits in developed countries running into double digits," Swart said.
The Southern African Clothing & Textile Workers' Union welcomed the additional funds set aside for incentives support for the clothing, textile, footwear and leather industry.
"Our preliminary response is that we welcome this development. We will now investigate the announcement in more detail and will issue a fuller statement over the next few days," general secretary Andre Kriel said in a statement.
Under the guidance of Trade and Industry Minister Rob Davies, Gordon said about R10 billion will be spent on Industrial Policy Action Plan investment promotion over the Medium Term Expenditure Framework period, including the automotive production and development programme, clothing and textiles production incentives, the film and television production incentive and support for small manufacturing and tourism enterprises.
He also announced that the state's child support grant will increase from R250 to R260 in April, while the old age and disability grants will rise by between R20 and R60 to up to R1 160 a month.
The ACDP said these increases should have should have been larger, particularly the child care grant - a view that the YCL opposed.
"We are very concerned with the high levels of social security expenditure, which has taken 20 percent of the budget," Ndima said, saying the 20 percent could be used to stimulate active participation of millions of South Africans in the mainstream economy.
With regards to the R6 billion allocated to National Student Financial Aid Scheme, the YCL was of the view it should be able to flow directly to the thousands of students in institutions of higher learning; this would also bring the realisation of free education sooner than anticipated.
On the down side, the DA disagreed with a R1.2 billion appropriation for the National Youth Development Agency over the next three years, which it described as unproductive spending.
"We disagree with increasing spending on sector education and training authorities (SETAs). These should be scrapped and the funds diverted to further education and training (FET) colleges.
"We are also disappointed to learn that the public wage bill has doubled in the last five years without any corresponding improvement in service delivery," George said.
Other parties like the IFP said the budget was "beautifully put but little more of the same."
"The budget does not break away from a fiscal paradigm, which cannot work in the long run. South Africa is a welfare state which dreams of becoming a developmental state. This is a legitimate dream but the budget doesn't yet concretise this into plan," it said.
