Question NW2850 to the Minister of Finance
04 October 2023 - NW2850
Buthelezi, Mr EM to ask the Minister of Finance
What are the details of the budgetary initiatives that the National Treasury has put in place in the past three financial years, which are directly aimed at stimulating the economy of the Republic to ensure that it does not remain a welfare state?
Reply:
One of the key components of the budget is the economic development function, through which funds are allocated to promote sustained and inclusive economic growth, and to address unemployment, poverty and inequality. The various areas of spending include economic infrastructure, industrialisation and exports, innovation, science and technology, agriculture and rural development and job creation. Details of the expenditure are included in the budget documents of the past three years.
The economic recovery plan announced in October 2020 links infrastructure investment and related institutional reforms to support higher economic growth. Government has made progress in implementing the economic recovery plan including in the electricity and transport sectors, roll out of critical infrastructure in water and sanitation, energy and transport as well as the presidential employment initiative.
Public-sector infrastructure expenditure increased from R187.4 billion in 2019/20 to R212.3 billion in 2021/22, and an estimated R255.2 billion in 2022/23. These funds were mainly used to expand power generation capacity, upgrade and expand the transport network, improve sanitation and water services and for social services infrastructure.
Since the inception of the budget facility for infrastructure, a total of R56.8 billion has been approved and allocated to the relevant infrastructure projects, including Limpopo Central Hospital, Gauteng Schools Programme, SA Connect, and Rural Bridges Programme. Since inception, the Infrastructure Fund has helped to package and approve 13 blended finance projects and programmes to the value of R48.8 billion.
Government is working on several reforms to strengthen public investment management and the associated value chain. Many of these involve pooling resources with the private sector in blended finance initiatives aimed at funding and implementing infrastructure projects more effectively.