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Reducing poverty and inequality has been the cornerstone of development policy in South Africa since the advent of democracy. Such goals gave impetus to the Reconstruction and Development Program (RDP), guiding government’s policy framework in 1994; they are the inspiration behind the National Development Plan of 2012. The government’s commitment to eliminate poverty is also reflected in fiscal policy: the equitable share formula, which is used to determine transfers to the different spheres of government, contains a poverty component as a redistributive measure.
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