By Zukile Majova
- The government will spend more than R1 trillion on roads, rail, energy, water and sanitation over the next three years to drive growth and create jobs.
- The social wage takes over 60% of spending and will fund healthcare for 84% of people, grants for 26.5 million and free basic services for 11 million households.
President Cyril Ramaphosa says the country is turning a corner.
In his weekly letter, he says last week’s Budget sets out a clear plan to grow the economy, create jobs and tackle poverty.
Finance Minister Enoch Godongwana presented the Budget in Parliament. Ramaphosa says every rand spent is a choice about people’s lives.
He says the money will make sure there are teachers in classrooms and nurses and doctors in clinics. It will keep electricity flowing to homes and businesses. It will also fund roads, rail and other projects that help the economy grow.
After years of uncertainty, Ramaphosa says the economy is now more stable. Debt is stabilising. The budget deficit is getting smaller. Credit ratings have improved and investors are showing more confidence.
He says this gives the government room to invest more without putting public finances at risk.
More than 60% of spending, after debt costs, goes to the social wage. This includes healthcare for 84% of the population. It also covers social grants for 26.5 million people and free basic services for over 11 million poor households. About 13.6 million learners will be supported in schools.
Basic education will get extra funds to hire more teachers. Early childhood development will reach 300,000 more children. The school nutrition programme will be adjusted to match rising food prices.
Infrastructure is a major focus. Over the next three years, public infrastructure spending will pass R1 trillion.
Ramaphosa says the government cannot do this alone. Private investment and public private partnerships will be used, while the state keeps control of key national assets.
The Budget also sets aside R4.1 billion for the Presidential Employment Stimulus to help young people find work. Small businesses will get tax relief to make it easier to grow and hire.
Ramaphosa says the plan balances fiscal discipline with the urgent need to create jobs and protect the most vulnerable.
Pictured above: President Cyril Ramaphosa pictured above
Image source: Presidency
