DA's Plan for Growth and Jobs - Democratic Alliance

elieves that, with our rich mineral deposits and sophisticated private sector, we have what ittakes to match these accomplishments.What would South Africa look like at 8% growth? The most obvious outcome would be that,in less than ten years, the economy would double in size. The national budget couldplausibly increase from R 1 trillion to R 2 trillion in today’s money. South Africa would replaceAustralia as the 15 th largest economy in the world. Moreover, the amount we could spend ofeducation, healthcare, housing and social security could potentially double.This is not to say that state involvement in the economy and society would expand alongwith the growing economy. Quite the opposite. As the circle of opportunity grows, and moreand more South Africans are able to earn incomes and invest in themselves and theirfamilies, the primary role of the state will be to correct market failures, make sure thatmarkets work for the many and not just the few, and give people the tools to become agentsof their own destinies.That is why, alongside policies designed to enhance the competitiveness and strategicposition of the South African economy - issues concerned primarily with growth - thisdocument dedicates two chapters exclusively to addressing job creation and building aninclusive economy. The aim of this document is to provide a policy programme to build abetter life for all South Africans with 8% economic growth as the essential ingredient.Potential increase in expenditure by government function (in R billion)4504003503002502008% Scenario2012/2013 Budget150100500EducationSoc.SecurityPoliceHousingTable 3: If the South African economy grew at 8% p.a. it would double in size in ten years.This means that the national budget could grow from R1 trillion to R 2 trillion (in today’smoney) if current tax and revenue collection rates are kept constant. The resources availablefor services such as education, healthcare, social security and policing could likewisedouble. Source: Treasury and Democratic Alliance27 | P a g e