THE government’s multi-billion rand arms deal had been the major constraint on social spending in SA over the last few years, Professor Di McIntyre, director of the University of Cape Town’s health economics unit said on Tuesday.

McIntyre, speaking at the release of a chapter on SA from a soon-to-be-published book on worldwide inequities in health, said the controversial contract indicated government was not sufficiently serious about redistributing spending, particularly on social services.

She also said the government’s Growth, Employment and Redistribution (Gear) policy emphasised growth at all costs, and paid limited attention to job creation or redistribution.

The chapter, which she co-authored, argues that government should make a concerted effort to raise household income levels among the poor, through employment-related initiatives, or programmes such as easier access to land or credit.

McIntyre also urged a re-look at tax policy, and at the corporate sector in particular, which was not overtaxed by international standards.

The budget had to move towards a position where it gradually started reducing defence spending again.

The working title of the book is: Challenging Inequities in Health. 

With acknowledgment to Sapa and Business Day.