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Free State to tap private sector

Bloemfontein - The Free State will look at working more closely with the private sector in an attempt to address the province's below-average performing economy, Free State finance MEC Seiso Mohai said on Thursday.

The economic growth rate for 2010 was 1.9% and the expected growth for 2011 was 2.4%, Mohai said in his provincial budget speech for 2011.

"We must begin to work more closely and decisively with the private sector to expand the value chain in agriculture, mining, manufacturing, tourism, trade and service."

Mohai said that in agriculture a revival strategy was needed because it was the province's strong point historically.

It was important that the province looked at the expansion and development of the entire agricultural value chain, he said.

Allocating the Free State's R23.2bn for 2011/12 (R73.7bn over the next three years), the MEC for finance gave education the largest share - 40% of the total budget.

Health would get R6.8bn to, among others, address the shortfalls in the Occupation Specific Dispensation for doctors, therapists and nurses in the province.

Money was also allocated for "centenary legacy projects" in the department of arts and culture in anticipation of the ANC's 2012 centenary celebrations in the province.

Mohai said these funds were related to a project on heritage sites that needed to be addressed since the governing party also formed part of "the history of South Africa".

The province was also looking at increasing its own collection of revenue.

It expected to collect R718m in own revenue this year - 3% of the total budget - from sources such as vehicle licences, traffic fines, patient fees and from its resorts and nature reserves.

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