Finance minister Pravin Gordhan avoided the harsh austerity measures South Africa was anticipating when he tabled a “cost-containment” budget of R1.463-trillion in parliament yesterday.
A new R750000 limit on the value of cars for politicians will be introduced, together with cuts in travel, accommodation and conference costs.
The minister announced that R16.3-billion would be reprioritised from other programmes over the next three years to support higher education, including R5.7-billion to keep 2016 fees at last year’s levels.
Gordhan said talks were under way on merging South African Airways and SA Express airlines and identifying a potential minority equity partner – although he dismissed any suggestion that privatisation was being discussed.
The minister told a media briefing that state-owned companies were no longer sacrosanct and government was willing to “take a tougher look” at whether it was getting an effective return for its investment.
On National Health Insurance plans, Gordhan said the Treasury would shortly release a paper on various financing options.
R4.5-billion has been budgeted over the medium term for revitalising health facilities in 11 NHI pilot districts, including in the Eastern Cape.
The old age, disability and care dependency grants will rise by R80 to R1500 in April 2016, and by a further R10 to R1510 in October.
The child support grant will rise by R20 to R350 in April and the foster care grant by R30 to R890.
Gordhan also announced that all government leasing contracts would be renegotiated, while future contracts for banking services, ICT infrastructure and services, health technology, school building and learner support materials will be centrally negotiated.
Government hopes to cut R25-billion a year off its R500-billion procurement budget by 2018.
“All of us want jobs, thriving businesses, engaged professionals, narrowing inequality, and fewer in poverty,” he said.
The National Treasury expects the economy to grow by only 0.9% this year, down from 1.3% growth in 2015, due largely to depressed global conditions and the impact of the drought.
While the drought had affected overall farming output, there was strong growth in some export products, including nuts and berries, grapes and both deciduous and citrus fruits.
Overall export growth increased by over 9% last year and would continue to benefit from the depressed value of the rand.
Gordhan announced energy investments this year of R70-billion, with R292-billion going to transport and logistics infrastructure over the next three years, and R30-billion for provincial roads maintenance.
The minister also confirmed the completion of the water supply to Lukhanji municipality, which includes building the Xonxa Dam at a total cost of R444-million.
On enterprise development, Gordhan said the Industrial Development Corporation would invest R100-billion over the next five years, including R23-billion to support black industrialists.
Through the Land Bank, the government will spend R15-billion over the next three years on land acquisition, farm improvements and expanding agro-processing opportunities.
Tax for rich, relief for poor
A new R750000 limit on the value of cars for politicians will be introduced, together with cuts in travel, accommodation and conference costs.
The minister announced that R16.3-billion would be reprioritised from other programmes over the next three years to support higher education, including R5.7-billion to keep 2016 fees at last year’s levels.
Gordhan said talks were under way on merging South African Airways and SA Express airlines and identifying a potential minority equity partner – although he dismissed any suggestion that privatisation was being discussed.
The minister told a media briefing that state-owned companies were no longer sacrosanct and government was willing to “take a tougher look” at whether it was getting an effective return for its investment.
On National Health Insurance plans, Gordhan said the Treasury would shortly release a paper on various financing options.
R4.5-billion has been budgeted over the medium term for revitalising health facilities in 11 NHI pilot districts, including in the Eastern Cape.
The old age, disability and care dependency grants will rise by R80 to R1500 in April 2016, and by a further R10 to R1510 in October.
The child support grant will rise by R20 to R350 in April and the foster care grant by R30 to R890.
Gordhan also announced that all government leasing contracts would be renegotiated, while future contracts for banking services, ICT infrastructure and services, health technology, school building and learner support materials will be centrally negotiated.
Government hopes to cut R25-billion a year off its R500-billion procurement budget by 2018.
“All of us want jobs, thriving businesses, engaged professionals, narrowing inequality, and fewer in poverty,” he said.
The National Treasury expects the economy to grow by only 0.9% this year, down from 1.3% growth in 2015, due largely to depressed global conditions and the impact of the drought.
While the drought had affected overall farming output, there was strong growth in some export products, including nuts and berries, grapes and both deciduous and citrus fruits.
Overall export growth increased by over 9% last year and would continue to benefit from the depressed value of the rand.
Gordhan announced energy investments this year of R70-billion, with R292-billion going to transport and logistics infrastructure over the next three years, and R30-billion for provincial roads maintenance.
The minister also confirmed the completion of the water supply to Lukhanji municipality, which includes building the Xonxa Dam at a total cost of R444-million.
On enterprise development, Gordhan said the Industrial Development Corporation would invest R100-billion over the next five years, including R23-billion to support black industrialists.
Through the Land Bank, the government will spend R15-billion over the next three years on land acquisition, farm improvements and expanding agro-processing opportunities.
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