Abstract
M.Comm.
The central question addressed by this study is how a Social Accounting Matrix (SAM) for
South Africa can be use to measure the impact of fiscal policy on the well being of South
Africa's society and therefore assist fiscal policy makers in the making of Fiscal Policy in
South Africa.
As a starting point, this study will define the concept of poverty and look at income
distribution as a measure of welfare. The questions to be raised in this section are:
What is the importance of income distribution?
How does South Africa compare in an international perspective and how does the
different sources of data in South Africa compare with one another?
How can inequality be measured?
What does a profile of South Africa's poor looks like and what is the burden of poverty
that they have to deal with?
The second section of this study describes South Africa's Fiscal Policy in order to understand
its impact on societies well being. More specifically, it examines:
The failures of recent fiscal policy and its lessons for the future; and
The government's GEAR (Growth, Employment and Redistribution) policy.
Section three investigates possible fiscal policy interventions for attacking poverty. The
following questions are addressed:
Which programmes can the government implement in order to address poverty?
What is the priorities for action?
The fourth and final section of the study looks at the Social Accounting Matrix (SAM) as a
method for measuring the impact of fiscal policy on the well being of a society. It is
discussed from various perspectives in order to arrive at a thorough understanding of its scope
and nature, including:
o What is a Social Accounting Matrix and does it exists in South Africa?
o How can a Social Accounting Matrix assist fiscal policy makers?