The necessity of financial priority determination to meet the changing needs for goods and services in the public sector

[摘要] The legislature of the Republic of South Africa is elected on the basis that itwill deliver certain goods and services to the electorate. Financial prioritydetermination ensures that resource allocations are directed towardsachieving the results that the government promised the electorate. Throughpriority determination, state funds are directed according to policy prioritiesFinancial priority determination has been found to be the most difficult part offinancial planning and management because it warrants certain expertisefrom the public officials which this paper addresses in the form of requiredsteps and phases to determine financial priorities. Without the understandingof the phases and steps, priority determination becomes impossible as theydetermine the criteria used to make decisions.As a result of the changing and increasing needs of the population, theRepublic of South Africa experiences severe budget constraints which createthe incentive for financial prioritisation, and this forces the departments toevaluate whether their existing policy objectives are still valid, how they havechanged and what effect the policy objectives have on programmes. Theconstraints of the macro-economic policy framework with increasingly lowereddeficit targets have also increased the need for prioritisation.It is imperative to consider all the factors that have a bearing on financialpriority determination, such as the general environment in which financialpriority determination is done; factors that determine the state of communitylife; needs and expectations of population; policies of the political parties;and research and experiences of public officials. When such factors aretaken into account, the process of financial priority determination becomes fairand right.The impact of financial priority determination on the ROP is important becausethe public sector strives towards reaching the priorities of the ROP. It hasbeen important to reflect on the basic principles and the key programmes ofthe ROP from which sustainable development has been identified as the ROPpriority. Measures have been identified to ensure meeting of sustainabledevelopment as an identified ROP priority. Through these measures,sustainable development would be attained.and expected results.This paper points out that in the face of limited resources and the massivedemand for public goods and services, it is inevitable that the governmentcannot hope to meet all the aspirations of the electorate. Instead thegovernment has to choose which sectors must be emphasised in theallocation of resources, indicate from which sectors resources should bewithdrawn and redeployed and the order in which these things should bedone. This process of choosing which sectors must be emphasised is calledfinancial priority determination.The government policies and strategies to ensure meeting of identifiedfinancial priorities in the public sector are tools and instruments through whichthe public officials could ensure implementation of financial priorities. SouthAfrica is characterised by severe inequalities and poverty of the majority of itsinhabitants. Sustainable development is the means through which the societywill be relieved of severe poverty although it would be difficult to bridge theinequality gap.Reference has been made to the challenge of economic growth anddevelopment facing the Free State Provincial Government to show how thisprovince plans on ensuring economic growth and development.Public officials implement the policy priorities of the government and theyhave to be guided by basic values and principles to meet the goals of thegovernment. These basic values and principles become the expectationsfrom the public officials in their endeavour to determine financial priorities andin the process of implementing the priorities.This document spells out how financial priority determination is linked with thedelivery of public goods and services. If allocation and use of resources isdone in an ad hoc manner, without priority determination that could lead topoor public sector performance and the needs of the public would remainunsatisfied. It can be summarised by saying that financial prioritydetermination allows for more effective use of limited resources.

[发布机构] University of the Free State