Money will be found for SAA and Post Office – Gordhan

2017-02-22 14:52 - Gareth van Zyl
(iStock) ~ iStock

Pretoria - Finance Minister Pravin Gordhan said he can't say where for now, but money will be found to put South African Airways (SAA) and Post Office on a sounder financial footing.

Speaking during a press conference before his Budget Speech at Parliament, he said constructive talks took place with the leadership of these state institutions, and that he is hopeful.

“During the next few months, proposals for putting the capital structure of SAA and the Post Office on a sound footing will need to be agreed. I hope that this can be dealt with in the Adjustments Budget later this year,” he said in his speech.

Gordhan said the budget continues to prioritise both national and provincial economic infrastructure requirements.

  • The Provincial Roads Maintenance Grant is allocated R10.8bn in 2017/18, taking into account the increase in road traffic volumes.
  • The South African National Roads Agency receives R15.4bn over the period ahead for the strengthening and maintenance of the national road network, which now stands at 21 946 kilometres.
  • The Department of Telecommunications and Postal Services receives R1.9bn over the medium term to invest in high-speed internet connections in public buildings and schools in eight NHI pilot districts.
  • The Passenger Rail Agency of South Africa continues to implement its modernisation and rolling stock renewal programme. Over the medium term, R16.7bn is allocated for 70 new train sets for Metrorail.
  • The development and operation of integrated public transport networks, funded through the Public Transport Network Grant receives R6.2bn in 2017/18.
  • To support higher density housing, subsidies for social housing have been rationalised and R600m over the medium term is reprioritised to the Social Housing Regulatory Authority for investment in rental housing units.

R18.4bn over the medium term is allocated to the Regional Bulk Infrastructure Grant and R12.5bn to the Water Services Infrastructure Grant. These allocations continue to prioritise water provision in the 27 most impoverished district municipalities.

R1bn is added to the local government equitable share in 2018/19, in view of rising household numbers and infrastructure maintenance requirements.

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