November 23, 2005
By Thomas Thale
THE Gauteng government is to spend R17-billion over the next three years to stimulate economic growth and alleviate poverty.
Much of this money would go towards infrastructure development and social spending, said Paul Mashatile, the MEC for finance and economic affairs, while tabling the Medium Term Budget Policy Statement in the Gauteng Legislature on Tuesday.
The increase in spending is possible because of the expected increase in revenue, projected to average 11 percent over the three years.
"The Gauteng provincial government's projected revenue over the Medium Term Expenditure Framework period ending in 2009 is expected to rise to R37,5-billion in 2006/7, R41,4-billion in 2007/8 and to R45,6-billion in 2008/9," Mashatile said.
An additional R1,3-billion would be allocated to fund Growth and Development Strategy commitments.
The budget for the current financial year has also been revised upwards, with revenue increasing from R33,5-billion to R34,3-billion. Expenditure has also been adjusted from R33,4-billion to R34,3-billion.
The major beneficiaries of the revised budget are the departments of health, education, social development, housing and public transport, roads and works.
The increases in the current financial year include:
- Health increases from R9,2-billion to R9,8-billion;
- Education increases from R10,3-billion to R10,8-billion;
- Social development increases from R7,5-billion to R7,6-billion;
- Housing increases from R1,6-billion to R1,7-billion; and
- Public transport, roads and works increases from R1,4-billion to R1,5-billion.
Gauteng was experiencing a buoyant economic climate, with economic growth exceeding the national average and unemployment declining from 30,8 percent in March 2003 to 22,7 percent in March this year, Mashatile explained.
"Real GDP [gross domestic product] has been through 23 quarters of uninterrupted growth, further pointing to the strength of our national economy ... In the first six months of 2005, Gauteng experienced an increase of 10,1 percent in the number of building plans approved compared to the same period last year."
Mashatile said the revised budget would help drive the economy towards an 8 percent annual growth rate by 2014.
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