south african budget expenditure

| Manohar Parrikar Institute for Defence Studies and Analyses", "Fact file: Valour-class small guided-missile frigates", "Revamped strike craft ready for counter-piracy duty", "Navy commences upgrade of fourth strike craft", "Navies versus Coast Guards: Defining the Roles of African Maritime Security Forces", "Southern African Shipyards refurbishing Navy strike craft", "Fact file: Heroine-class diesel-electric submarine", "Submarine Fleet Strength by Country (2020)", "Terrorism: Insurgency in Mozambique can spread to neighbours, Military Intelligence warns", "Fact file: Hecla (Protea)-class hydrographic vessel", "South African Journal of Military Studies - Resurrection of the marine capability in the South African Navy : the Maritime Reaction Squadron", "Exercise Xena testing Maritime Reaction Squadron", "Maritime patrol mission in the Mozambique Channel: Operation Copper extension for another year to cost South Africa R154 million", "SAAF no longer part of Op Copper in Mozambique", "SA Navy two platform deployment returns from Op Copper duty", "Operation Copper extension to cost R154 million", "Five maritime patrols this year under Operation Corona", "Navy, Defence acknowledges it is in danger of sinking", "SA Navy falling behind other African states", "South Africa Military Spending/Defense Budget 1960-2020", "South Africa - ratio of military expenditure to gross domestic product (GDP) 2008-2018", "South Africa - gross domestic product (GDP) growth rate 2021", "SA Navy in danger of losing frigate and submarine capabilities due to declining budget", "Avoiding the siren's song: will Operation Phakisa deliver prosperity? Director Fleet Quality Assurance (DFQA) is responsible for the output of Fleet Command and monitoring quality assurance throughout Fleet Command. Whilst SAS Protea was built in 1972, her replacement will be based on Vard Marine's VARD 9 105 science vessel, specifically adapted for South African service and ‘incorporates the latest hydrographic and oceanographic sensor suite’. South Africa’s contingency reserves were also eroded during this period of countercyclical fiscal policy. In 2010, that level was 1.12%, and in 2020, expenditure is expected to fall to around 0.95%, its lowest level since 1960. [60], Since 2011, one of the SA Navy’s major and long-standing focuses has been that of the anti-piracy initiative, Operation Copper. [88] The ship will be an evolution from the Vard Marine designed HMS Echo and HMS Enterprise which have been in Royal Navy service since 2002. With an estimated cost of R3 billion, only R270 million has so far been earmarked for the projects until 2022/23. As a result of the declining financial situation, the Navy has warned that it will seriously struggle to maintain its current capabilities, levels of investment, and international commitments. As a result of this, government introduced a three-phase economic response to mitigate the impact of the virus. As the SA Navy enters the 2020s, the service faces significant challenges if it is to arrest its current decline. [33] A positive for the Navy during this period however was the acquisition of the multipurpose sealift/replenishment ship SAS Outeniqua, a former Soviet-built Arctic supply vessel, in September 1992 as a replacement for the 35 year old Tafelberg.[34]. [11] In the same year, the SANS commissioned the small hydrographic survey ship HMSAS (His/Her Majesty’s South African Ship) Protea, two minesweeping converted trawlers HMSAS Immortelle and HMSAS Sonneblom, and the Training Ship General Botha - all formerly in Royal Navy service. [90] The project has a current completion date target of August 2023, with the first of the Motor Boats being launched in September 2020. A series of modifications have been made to the class so as to undertake these clandestine operations. [45], As of 2020, South Africa is one of only three states on the African continent, along with Algeria and Egypt, that currently operate submarine assets, and the only state in the sub-Saharan region. Against the backdrop of this deteriorating economic outlook, the Minister of Finance has reiterated in this budget that South Africa must strive for fiscal sustainability, measured as stabilisation of the debt-to-GDP ratio, by moderating spending as a share of GDP and reducing the wage bill as a share of overall spending. What will the 2021 Budget Speech mean for you and your business? [51], Although gaps in deployment have occurred as a result of mechanical issues, as well as the South African Air Force withdrawing its C-47TP maritime patrol aircraft in 2016 from Mozambique due to maintenance problems and lack of sufficient aircrew. [35] Better known as the infamous "Arms Deal", the acquisitions in the package, and those persons involved, have been repeatedly subject to substantive allegations of corruption, fraud and bribery. This comes as government provided one of the largest fiscal responses to the Covid-19 pandemic among developing countries, resulting in consolidated government spending reaching a record 41.7% of GDP, compared with 29.6% during the economic meltdown in 2008/09. “Given uncertainty around vaccination campaign costs, the contingency reserve has been increased from R5 billion to R12 billion in 2021/22. [91], As of 2020, the SA Navy’s main projects are under serious threat from years of underfunding, as well as recent budget cuts. [28] The ensuing international economic disinvestment from South Africa was stepped up, placing huge strains on the economy. From 1922 to the 1940s the SA Navy was effectively an extension of the Royal Navy, and therefore wore the same uniforms and similar insignia. In 1973 the UN labelled the policy of apartheid a "Crime against Humanity",[25] magnified further by the brutal state repression and subsequent mass incarcerations and deaths following the Soweto uprising in 1976[26] and the death of prominent anti-apartheid activist Steve Biko in 1977. [24], The second half of the 1970s however saw South Africa facing severe amounts of international isolation and criticism. Modified: Tuesday, 23 February 2021 15:50 GMT ; Written by James Skinner; Subscribe to our Newsletter [50], The South Africa Marine Corps was first established as a sub-branch of the Navy in 1951 until 1955 and then reformed in 1979 until 1990, both times with the primary purpose of protecting the country's harbours. South Africa healthcare spending for 2016 was $427, a 9.18% decline from 2015. These efforts remain on course,” the National Treasury said in documents ahead of the tabling of the Budget in Parliament. “The fiscal framework reduces growth in the wage bill and the share of spending on wages, while sustaining real spending increases on capital payments, specifically for buildings and other fixed structures. This budget brief is one of five that explores the extent to which the national budget and social services sector budgets address the needs of children under 18 years in South Africa. [11] One officer and eight ratings died during the course of the war. However, in 2018 it was confirmed that only the three IPVs would be constructed, with the OPVs being cancelled as a cost-saving measure. SAS Tobie, SAS Tern, and SAS Tekwane are equipped with a single 12.7mm Browning machine gun and have the capacity to embark a RHIB with a small complement of marines to inspect vessels. [38] Constructed with principles of stealthy design, the class has a 50% smaller radar signature of similar vessel size, 75% less infrared emissions, 20% lower life-cycle cost, 25% lower displacement and 30% fewer crew members. The Estimates of National Expenditure (ENE) is a book published along with the tabling of the budget for the new financial year. [21] Following the Soweto uprising and subsequent mandatory arms embargo, South Africa had been forced to accept the cancellation of another significant naval procurement of two new Type-69A light frigates and two Agosta-class submarines from France. [14] Deployed to the Far East under British command, South Africa later contributed to operations to liberate Japanese held territory. “Compared with the 2020 Budget, main budget non-interest expenditure will be reduced by R264.9 billion, or 4.6% of GDP, over the MTEF period. [74] As a result of Covid-19, as well as ongoing problems within the South African economy, GDP is expected to fall by 5.6% in 2020/21, with significant ramifications for the country and the South African Navy.[76]. As a result of the Great Depression in 1929, coupled with lack of government investment, the SANS by 1939 had been forced to return all vessels to the Royal Navy. budgets between 2009 and 2011.3 South Africa has also experienced a period of economic slowdown, causing considerable fiscal constraint. Director Fleet Logistics (DFL) is responsible for all Logistics units as well as for the maintenance of the fleet. [83] With a final commissioning target date of December 2025,[84] with the first vessels delivered by 2021, these vessels, currently classified only as Stan Patrol 6211, will have a maximum speed of 26.5 knots and a range of 4000 nautical miles. Data Source: World Bank MLA Citation: Similar Country Ranking; Country Name Per Capita (US $) Cuba: $987: Maldives: $974: Nauru: $966: Costa Rica : $910: Brazil: $848: Montenegro: $731: Tuvalu: … As in other countries, COVID-19 spending doubled the South African budget last year. The South African economy is projected to decline by 7.2 per cent in 2020. “Most of these adjustments are to the wage bill. [20], Deploying at least a single Valour-class frigate or one Heroine-class submarine, along with aircraft from the South African Air Force, the SA Navy undergoes exercises with others, such as the United States Navy (Exercise Shared Accord/Southern Accord),[55] NATO naval battlegroups (Exercise Amazolo), the French Navy (the annual Exercise Oxide),[56] the German Navy (the biennial Exercise Good Hope),[57] the Royal Navy (ad hoc exercises when visiting South African waters),[58] the Indian Navy (the biennial Exercise IBSAMAR), and the navies of Uruguay and Brazil (Exercises Atlasur and IBSAMAR)[59], The navy also provided air and sea security for the 2010 FIFA World Cup by deploying three frigates as guard ships off the cities of Durban, Port Elizabeth and Cape Town. These posts are pooled and members are drawn from them as needed to augment full-time units and ships' companies. In 2006, this force became the Maritime Reaction Squadron. ISBN Number: 978-0-620-57302-3 A Review of National and Provincial Government Budgets in South Africa 2007/08-2011/12 By Khetho Lomahoza, Stephanie Brockerhoff and Isobel Frye Monitoring the Progressive Realisation of Socio Economic Rights Project July 2013. 2020 Budget Speech Gross national debt is projected to be R3.56 trillion, or 65.6 per cent of GDP by the end of 2020/21. [11]  South Africans would see service on warships in European waters and the Mediterranean, as well as participate in the land campaigns in German South West Africa and German East Africa. It had been hoped that the OPVs, with their helicopter carrying abilities, would have played a much more effective role in policing South Africa’s extensive exclusive economic zone (1.5 million km2),[86] particularly in the rough seas of the Cape. The construction of this new vessel, currently being built by Durban based Sandock Austral Shipyard, will represent a major upgrade in capability for the Navy. “Minister Mboweni needs to spend on the COVID-19 recovery and a vaccination rollout. Equity friendly is usually when expenditures are up and taxes are down which would mean that people have more money in their pockets and this is usually good for markets, particularly for the JSE and South African Inc Stocks. Time to take our medicine. [53], The squadron consists of the following components:[54], The SA Navy maintains the traditional role of providing a credible military deterrent, protecting South African interests against possible enemy attack, and participating in African Union peacekeeping missions. Statistics South Africa conducts an Income and Expenditure Survey (IES) every 5 years. The 2021 Budget proposes a significant moderation in spending on the consolidated wage bill, which grows by an average of 1.2% over the medium term,” said the department. [92], Four directorates are responsible for the day to day control of Fleet Command:[92]:70, The Navy operates the following Naval Bases:[92]:149, As of the end of the financial year 2018/19, there were approximately 6,816 active uniformed members of the SA Navy, just short of the 7,071 target. “Gross debt-to-GDP is now projected to stabilise at 88.9% of GDP in 2025/26.”. The last IES was conducted between September 2010 and August 2011. The Maritime Reaction Squadron provides an amphibious, diving and small boat capability to the Navy, deploying infantry-trained South African Navy personnel in various peacekeeping roles within the African continent, as well as assisting in boarding operations at sea, and humanitarian and disaster relief. Complete The South African's latest reader survey by 31 March 2021 and win R6000 in cash. South Africa’s revised budget – snapshots Debt crisis: The mouth of the hippopotamus. [22], By the early 1960s, the South African Navy was fast reaching its highpoint of international inclusion and is generally considered to be the golden age of a well balanced, modern, and effective service optimised for conventional naval engagement alongside friendly Western international partners. In 2010, that level was 1.12%, and in 2020, expenditure is expected to fall to around 0.95%, its lowest level since 1960. As a whole, the Defence Budget for 2020/21 has been given 87% of its required funding, a shortfall of R9.4 billion (£433 million[72]). A real boost for the Navy's influence, Tafelberg could deploy a company strength landing force, six landing craft, two medium helicopters and be equipped with a small hospital. EXPENDITURE AND FINANCE IN SOUTH AFRICA Di McIntyre Gerald Bloom Jane Doherty Prem Brijlal Published jointly by the Health Systems Trust and the World Bank Health Systems Trust 504 General Building Cnr Smith and Field Streets Durban 4001 South Africa World Bank 1818 H Street NW Washington DC 20433, USA Contents . [11], A year after the end of hostilities, on 1 May 1946 South African Naval Forces were reconstituted as part of the Union Defence Force before undertaking its final name change in July 1951, when the SANF officially became known as the South African Navy. A new Navy Reserve system was created consisting of roughly 1,000 reserve posts. Today I table before this House: 2021 Appropriation Bill 2021 Special Appropriation Bill 2021 Division of Revenue Bill The Budget Review The Estimates of National Expenditure (ENE) [31][20] Throughout the decade, the South African Navy continued to participate in the Border War and coastal protection. Education took up the lion’s share. The main focus of the then upcoming South African Budget 2020 was our ability to retain our last remaining investment grade credit rating from Moody’s. The command structure is depicted below. This means a consolidated budget deficit of R370.5 billion, or 6.8 per cent of GDP in 2020/21. 3.1.2. [39], As the SA Navy has a strength of only four primary surface warships, in an effort to improve asset availability in more routine littoral patrol operations and ease the stress on sophisticated, but ill suited, warships, three previously decommissioned Warrior-class strike-craft were modernised and recommissioned as offshore patrol vessels (OPVs) between 2012 and 2014 - SAS Isaac Dyobha (P1565), SAS Galeshewe (P1567) and SAS Makhanda (P1569). South Africa’s budget to deal with COVID-19 fails to pave way for more equal society June 25, 2020 9.41am EDT David Francis , Imraan Valodia , University of the Witwatersrand Join the conversation on Twitter #Budget2021. They are in turn accountable to the Minister of Defence and Military Veterans of the Defence Department.. Naval Station Port Elizabeth – provides support to the fleet and host to visiting ships, however no major vessels are based here. A black beret later replaced the peaked cap in working uniforms. The Marines were disbanded on 18 January 1990, following a major restructuring of the Navy at the end of the South African Border War. South African Budget 2021. The National Treasury said the consolidated deficit is projected to narrow from 14% of GDP in 2020/21 to 6.3% of GDP by 2023/24. [11] As South Africa disentangled itself from external and internal security operations, the South African Defence Force underwent severe budgetary cuts. Equipped with radar, combat management systems, a forward gun position and various heavy machine guns, the vessels will also carry two RHIBs for boarding operations, with the aft deck being designed to accommodate various container arrangements that aid unique mission requirements. It was even reported in 2011 that nine OPVs could be constructed, without any IPVs, due to the rough sea state off the coast and the practical experience gained which favoured larger vessels.[87]. Finance Minister Tito Mboweni unveiled the 2021 fiscal spending plans in an annual national budget speech to parliament. [48] Drakensberg is also modified to carry two rigid-hulled inflatable boats (RHIB), as well as two landing craft utility (LCU) for limited amphibious use. With an estimated running cost of R154 million a year, an extension to Operation Copper has been approved and will continue to be funded until at least the 31st March 2021. Other international visits in the following years included Zaire, Kenya, Bangladesh, Turkey, France, Portugal, and Uruguay. “South Africa’s budget targets a primary deficit of 0.5% in 2023, tighter than the 2019 outcome of 1.5% of GDP. ", "SA at sea over illegal fishing in its waters", "Project Biro on schedule, with delivery for mid-2021", "SA Navy projects under threat from budget cuts", "Armscor finally orders inshore patrol vessels for SA Navy", "Sea Around Us | Fisheries, Ecosystems and Biodiversity", "Sandock Austral Shipyards making progress with Project Hotel", "First survey motor boat for South African Navy launched", "Paramount Maritime launches survey motor boat for SA Navy", "Presentation on the Transformation of the SA Navy", "New director: maritime strategy for SA Navy", "SANDF PROMOTIONS & APPOINTMENTS FOR 2016/17", "Hard to say goodbye, says outgoing Naval College chief", "Minister approves new ranks for Warrant Officers", "South African Navy mulls future requirements as fleet remains active", "SA Navy to commission Maritime Reaction Squadron", "Fact file: Valour-class frigates – defenceWeb", Ships of the South African Navy, Past & Present, Minister of Defence and Military Veterans, https://en.wikipedia.org/w/index.php?title=South_African_Navy&oldid=1011188453, Articles with dead external links from April 2019, Articles with permanently dead external links, All Wikipedia articles written in South African English, Articles with unsourced statements from January 2021, Creative Commons Attribution-ShareAlike License, Mine counter measures vessels/ Offshore Patrol Vessel, Under construction, entry into service 2021 – 2025, Reaction Force Division (RFD) consisting of one naval infantry company with a command and support element, Director Fleet Force Preparations (DFPP) is responsible for the day-to-day running of the ships and submarines and for ensuring their operational readiness. Basically this is the grants paid to 17.5 million people in South Africa, while South African only has 4.9 million people paying personal income tax. The list is mainly based on CIA World Factbook for the year 2016 and 2019. Our experts will share their insights before and after the budget announcement. South Africa healthcare spending for 2015 was $470, a 7.81% decline from 2014. Official site with labour legislation, policy documents, and news. On 1 April 1922, the South African Naval Service (SANS) was formed and, alongside the RNVR (SA), tasked with the protection of territorial waters, minesweeping and hydrography. The bulk of the money flowed into provincial governments’ two main areas of responsibility: education and health. Download Historical Data Save as Image. "Capital expenditure by South Africa’s higher education institutions continued to fall, for the second consecutive year. The acute need to re-equip the navy, including the wider Armed Forces after the lifting of apartheid-era sanctions, was addressed by the Strategic Defence Package of 1999. All operational forces, including ships and submarines, fall under the control of the Flag Officer Fleet who is based in Simon's Town. The South African military evolved within the tradition of frontier warfare fought by Boer Commando forces, reinforced by the Afrikaners' historical distrust of large standing armies. The R109 billion difference between the R36 billion net increase and the R145 billion allocation set aside, was reallocated from allocations made in the February 2020 budget. “In this regard, the approach to future wage negotiations will align with the fiscal position and prevailing economic conditions. [5] The year 1948 was a turning point, not only for South Africa as a country following the National Party's electoral victory, but also the direction of the Navy. Instant View: South Africa Budget Flags COVID Support, Spending Restraint By Reuters , Wire Service Content Feb. 24, 2021 By Reuters , Wire Service Content Feb. 24, 2021, at 10:00 a.m. South Africa is expected to record its worst economic performance in recent history, due to the COVID-19 pandemic and subsequent lockdown measures. Some of the countries in the SADC are injecting financial resources to build their military capacity through acquisition programmes. Allocation of funding for Projects Biro (modern inshore patrol vessels) and Hotel (replacement hydrographic survey vessel), as well as the Army’s Project Hoefyster (new infantry combat vehicles), amounts to R2.8 billion(£129 million[72]), however the required level of funding needed is expected to be R13.7 billion (£633 million[72]), nearly a R11 billion shortfall (£508 million[72]). Revenue estimates are higher than projected in the 2020 Medium Term Budget Policy Statement (MTBPS), enabling government to provide immediate support for urgent public health and social needs, while improving the debt-to-GDP outlook. “Since the 2020 Budget Review, the budget deficit has doubled, and the in-year revenue shortfall is estimated at R213.2 billion. With the ability to operate far out into the Cape and handle the often rough seas, the OPVs are also expected to complement the navies combat ability, particularly when undertaking anti-piracy patrols in the Mozambique Channel. The National Treasury also said that it will provide continued support to the economy and public health services in the short term, without adding to long-term spending pressures; and, improve the composition of spending, by reducing growth in compensation while protecting capital investment. [65], For the continued safeguarding of South Africa’s borders, Operation Corona aims to combat illegal fishing, poaching, and smuggling within its territorial waters. Government expenditure on education, total (% of GDP) from The World Bank: Data The National Treasury said gross national debt is projected to rise from 80.3% of GDP in 2020/21 to 87.3% of GDP by 2023/24, with debt-service costs reaching R338.6 billion in that year. “These changes reflect the impact of the Covid-19 pandemic, as well as government’s response, which prioritised relief for households and businesses, alongside a major effort to protect public health. After increased pirate activity in the Mozambique Channel (a crucial import/export sea lane for South Africa),[61] and subsequent requests for help from fellow Southern African Development Community members (Mozambique and Tanzania), the navy has routinely deployed assets in an effort to provide maritime security in the region. Below are the highlights of South Africa’s 2020 medium-term budget policy statement presented by Finance Minister Tito Mboweni in Cape Town on Wednesday. [70][71] For 2020/21, the Defence Budget totals R52.4 billion (£2.4 billion[72]),[73] with the SA Navy being allocated R4.9 billion (£226 million[72]), roughly 9%. [10] A total of 412 South Africans served in the RNVR[SA] during the war, with 164 members volunteering for the Royal Navy directly. [42], Reflecting their new policing role, the Warriors’ old Skerpioen missile launchers and the rear 76mm gun was removed. [46], Highly sophisticated vessels, the Heroine-class’ utility, aside from traditional anti-ship engagement and area denial, is its intelligence collection via special forces deployment. In addition, the SA Navy is facing an acute skills shortage which is severely frustrating vessel availability. In 1997 the navy celebrated 75 years, with 15 countries sending ships for the festivities. South Africa . [15] Overseeing a large industrial program of converting civilian whalers and fishing trawlers into military vessels, despite being highly primitive, over 80 such craft would go on to be the backbone of the South African naval forces. The IES seeks to establish what South Africans spend their money on, so that the basket of goods which makes up the Consumer Price Index (CPI), used to calculate the inflation rate, can be updated. 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