Publications
Partners
Pretoria - Government and state-owned enterprises will spend more than R800bn over the next three years on infrastructure, which supports future economic growth while contributing directly to current gross domestic product (GDP).
Finance Minister Pravin Gordhan said the money would be spent on new power stations, road networks, dams and water supply pipelines, rain and ports facilities, schools, hospitals and government buildings.
“This builds on the steady progress made over the past decade which saw the contribution of government and public enterprises to gross fixed capital formation rise from 4% of GDP in 2000 to 8.6% in 2009.
"These are long-term investments in the future of our country, and in the capacity of the economy to grow and create jobs for generations to come."
While infrastructure spending in the lead-up to the 2010 Fifa World Cup had assisted in moderating the impact of the recession on South Africa, there had been an apparent deterioration in government construction spending over the past year.
The challenge of intensifying infrastructure spending over the period ahead would require attention to planning, budgeting and contract management in national and provincial departments and municipalities.
According to the budget review, capital expenditure continued to underperform budgeted amounts. Since 2006/7, provincial capital expenditure had averaged about 86% of allocated capital budgets.
The municipal performance had improved from 72% in 2006/07 to 85% in 2008/09, before declining to 80% in 2009/10. State-owned enterprises spent 72% of their capital budgets in 2009/10.
- Fin24
Finance Minister Pravin Gordhan said the money would be spent on new power stations, road networks, dams and water supply pipelines, rain and ports facilities, schools, hospitals and government buildings.
“This builds on the steady progress made over the past decade which saw the contribution of government and public enterprises to gross fixed capital formation rise from 4% of GDP in 2000 to 8.6% in 2009.
"These are long-term investments in the future of our country, and in the capacity of the economy to grow and create jobs for generations to come."
While infrastructure spending in the lead-up to the 2010 Fifa World Cup had assisted in moderating the impact of the recession on South Africa, there had been an apparent deterioration in government construction spending over the past year.
The challenge of intensifying infrastructure spending over the period ahead would require attention to planning, budgeting and contract management in national and provincial departments and municipalities.
According to the budget review, capital expenditure continued to underperform budgeted amounts. Since 2006/7, provincial capital expenditure had averaged about 86% of allocated capital budgets.
The municipal performance had improved from 72% in 2006/07 to 85% in 2008/09, before declining to 80% in 2009/10. State-owned enterprises spent 72% of their capital budgets in 2009/10.
- Fin24
