SOUTH AFRICA: Fiscal review reveals impact of HIV/AIDS

The review of provincial and local government finances released yesterday by Finance Minister Trevor Manuel, revealed the impact of HIV/AIDS on service delivery, budget forecasts and personnel planning throughout government, saying the affects of the pandemic were becoming visible.

According to the 'Business Day' newspaper, it is the first time that government has provided such a broad picture of the far-reaching effects of HIV/AIDS at all government levels. "The impact of HIV/AIDS is becoming more visible and is likely to be felt severely in the provincial and local spheres," the Intergovernmental Fiscal Review said. South Africa's nine provinces are already spending an estimated US $430 million a year on AIDS-related illnesses.

"One of the most serious challenges facing the public sector is the impact of HIV/AIDS on its workforce, its productivity and its skills base. Presently SA is not training enough nurses and teachers to cope with demand, given relatively high rates of natural attrition and a projected increase in AIDS-related deaths. A more concerted plan is required to increase training in critical areas such as education, health, policing and justice," the report said.

The report estimated that the number of AIDS orphans would increase from about 150,000 in 2000 to more than 2 million in 2010 and significant funding to cater for these orphans would be required. "It is clear that the current social safety net is not adequately designed for dealing specifically with the impact of HIV/AIDS on households and to confront the complex interaction between HIV/AIDS and poverty," said the review, which analyses the trends in provincial and local government finances.

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[This report does not necessarily reflect the views of the United Nations]