The RDP is government's strategy for rebuilding and restructuring the economy to create a better life for all. The RDP aims to meet basic needs, and eliminate poverty, to create jobs, develop our human resources and strengthen the democratic institutions of our civil society. GEAR shows that to create jobs we need investment, and that both government and the private sector are important for this to happen. The budget reflects the choices that government has to make, and is the tool it uses to achieve its economic and developmental goals. The government has to balance a wide range of legitimate demands with limited resources at its disposal.
Government pays interest on all money it borrows.
After education, the interest government pays on its debt is the largest item on the budget. The more we borrow, the more interest we have to pay. If we do not pay interest, we will not find anyone willing to lend us the money we need. The budget affects how government allocates resources, and also influences income distribution, prices, employment and economic growth. If the budget is used well, it can be a powerful tool for social and economic transformation.