The Budget Game

Trevor Manuel once remarked that “to budget is to choose”. The Budget Game puts participants in the position of being a decision maker, and making choices with a defined set of possible programmes and a defined budget. The intention of the game is for participants to make choices and then motivate them. In addition, it is about understanding why certain choices are made and not others.

Anyone playing this game should follow the rules:

Allocate R900-million to a maximum of four projects
Assume that all programmes are asking for the full allocation (R900-million). You can, however, split the R900-million across the four programmes you have chosen, in any manner you deem fit.
For each of the projects you should motivate why you have allocated to some projects and not others.

The attached sheet can be used to help you make decisions:

Budget Game Sheet

Please post your comments and motivations for the decisions you reach. Remember that while the game is based on actual policies, it is purely designed for learning about making budget choices. Also, the game attempts to mimic “incomplete information” that one often has in making policy choices.

(This game is drawn from a training manual called Fighting Poverty in South Africa: A Civil Society Reader. I have updated the budget game slightly, with a couple of links, often to PDF documents. Versions of this game have been run for a couple of years, and it works in a facilitated discussion. It is part of a longer training programme on budgets designed for the People’s Budget Campaign. Let us see if it works on a blogging platform. I might tally up the proposals, dependent on responses.)

Background
R900-million has been earmarked for key “strategic programmes” that will alleviate poverty and create jobs.

Economic growth has been positive for the past 10 years. The government is running a surplus. However, as a government official you have been extremely worried that unemployment is very high. Moreover, the HIV/Aids epidemic is having an impact on society with life expectancy already reduced. Poverty remains stubbornly high. The government aims to reduce poverty and unemployment by half in 2014, and the allocations should provide the best options to reach that goal.

Your task is to allocate R 900-million to a maximum of four projects, and provide a motivation for your decisions.There are links to various policy documents or research papers that could be of assistance, but it is not necessary to consult them.

Programme one: Early childhood development

It is estimated that nine out of 10 South African children do not have access to early childhood development (ECD).
The proposed programme will seek to employ teachers and provide learner materials in line with guidelines developed.

Programme two: HIV/Aids

HIV/Aids is widely seen as an epidemic. Responding to the epidemic has two major thrusts (prevention and treatment).
In the context of the new HIV/Aids plan, the Department of Health is requesting additional funding.

Programme three: Electricity generation

South Africa is facing a significant electricity shortage.
Credit agencies have indicated that the government needs to provide a capital injection into Eskom, or its credit rating will be reduced.
Eskom will use the funds for capital investments.

Programme four: Increasing the land-redistribution budget

The government has only redistributed 3% to 5% of land since 1994. A major obstacle in speeding up land reform is the high cost of land, and that commercial farmers must be willing to sell their land.
The Department of Agriculture and Land Affairs proposes an increase in the budget for land redistribution. With the additional resources it hopes to purchase land and provide support for communities to start viable agricultural businesses.
The department has warned that implementation may take longer than the current fiscal year.

Programme five: Expanding the child-support grant to 18 years

Studies show that of all government programmes, social grants make the biggest difference. Often grants are the only source of income in many households.
Studies show that the with the child-support grant, school enrolment is increased and nutrition improved, and the grants are spent on households basics like food.
Based on this, the Department of Social Development proposes that allocations be made to expand the child-support grant from 14 to 18 years.
The department also indicates that the money will be spent easily through the existing systems to allocate grants.

Programme six: Support for SMME development

The Department of Trade and Industry proposes to use the money to finance low-interest loans for small, medium and micro enterprises.
The money will be channelled through existing financial institutions, with a focus on agriculture and start-up loans for small businesses.
The department argues that this is strategic, as the money will create jobs in the long term and is thus not just spending but an investment.

Programme seven: Uniform/standard court performance management framework

The Department of Justice and Constitutional Development has run a consultative process with court managers to determine a performance management framework and the development of uniform standards.
It requires funds for the monitoring and implementation of the framework.
The central motivation is that the management of courts will be significantly improved.

Programme eight: Street trading

Street trading is one of the largest areas of work in South Africa, yet local governments often frown upon it. AsgiSA, however, sees street trading as one of the main areas of intervention in the “second economy”.
Funding is for educational programmes for local government, and development of appropriate laws with local government.

END