Public sector set to spend R903 billion on infrastructure: Minister
The government estimates that the public sector will spend R903 billion on infrastructure in the medium term. Much of this will be allocated to state-owned enterprises and public institutions through public-private partnerships. Finance Minister Enoch Godongwana announced this during his budget speech earlier on Wednesday.
Minister Godongwana says, “The public sector is projected to spend R903 billion on infrastructure over the medium term. The largest portion of this, around R448 billion, will be spent by state-owned companies, public entities and through public-private partnerships.”
Transport and logistics will get a boost of R351 billion, including SANRAL.
“These spending plans are mostly strategic projects in the following sectors. Transport and logistics will spend an estimated 351,1 billion including for SANRAL to improve the road infrastructure network. Water and sanitation are planned to spend R132.5 billion over the next three years mainly by the water boards. And we undertake infrastructure projects we need to crack down on criminality in the construction sector. The extortion and intimidation of lawfully appointed contractors and the workers they employ cannot be tolerated.”
VIDEO | 2023 Budget Speech:[embedded content]
Godongwana adds, “In relation to the recent floods and the national disaster declared in various provinces, R695 million is available in this financial year for immediate relief. A further R1 billion will be available next year.”
Minister Godongwana expects the budget gap to fall to 4% this year. The deficit is projected to reach 4% this year before narrowing to 3.2% in 2025-26.
He claims the fiscal consolidation strategy that government adopted years ago, aimed to put a lid on consumption spending and allowed for the partial use of higher-than-expected revenues to reduce the deficit.
Godongwana says the fiscal deficit figures include the impact of taking on over half of Eskom’s debt.
“This year government will achieve a main budget primary surplus, meaning that revenue exceeds non-interest spending for the first time since 208/9. Next year the consolidated deficit narrows to four percent of GDP, the lowest deficit since 2019/20. It will fall further to 3% of GDP in 2025/26.”
Source: SABC News (sabcnews.com)