SIX percent of the Eastern Cape’s R62.9-billion budget will go towards infrastructure, while the bulk – a massive 65% – goes to government salaries.
Speaking before tabling his budget policy speech yesterday morning, finance MEC Phumulo Masualle said about R7.3-billion will go to the infrastructure spend – and more than R40-billion to staff salaries. A further R10.1-billion is for goods and services.
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BROAD STROKES: Finance MEC Phumulo Masualle tabled the province’s new budget in Bhisho yesterday Picture: SINO MAJANGAZA
Masualle said one of the key pillars for economic growth stimulation was investing in infrastructure.
He said the R7.3-billion would “contribute significantly” to stimulating the construction industry.
This infrastructure budget is expected to decrease over the next two financial years – to R7.1-billion in 2015-16 and R5.5-billion in 2016-17.
“A decent road network is crucial for growth, investment, employment creation and poverty reduction,” he said. “It facilitates trade and commerce. Many of our roads need urgent attention. It is for this reason that we are devoting resources to deal with these challenges.
“R3.6-billion will be allocated to the roads and public works department for provincial roads maintenance over the medium term expenditure framework (MTEF) period.”
Masualle said the need for office space in Bhisho and surrounding areas had increased and with it, lease costs. “A major focus for the next three years is to implement the Bhisho office park, modernise office buildings and build own buildings on available land.”
Masualle added that land had been identified in Buffalo City Metro and they were discussing services like water, sanitation and electricity.
More than R6-billion goes to education and health infrastructure projects over the MTEF period.
Last month, the Daily Dispatch reported that more than R1.1-billion was made available to build 17 new clinics throughout the Eastern Cape.
A further R900-million has been set aside to build three new 100-bed facilities – Bambisanani, Zithulele and Nurse Knight hospitals – in the OR Tambo region.
Helping inflate the Eastern Cape’s R52-billion portion of the national budget are a number of conditional grants.
These include a national infrastructure grant to rehabilitate an additional three hospitals and 33 clinics at R218-million, to address the poor state of facilities identified.
On water and sanitation, Masualle said R250-million had been made available to Coega to support municipalities to deliver much-needed water and sanitation infrastructure.
“Lack of access to water and adequate sanitation has a crippling effect on the provision of education and leads to health hazards that burden the health system. It also threatens social cohesion and stability.”
Masualle allocated the biggest chunk for infrastructure to the human settlements department – R2.1-billion, while roads and public works received R1.9-billion. Health and education each received R1.2-billion for the 2014-15 financial year.
The full budget allocations for the year immediately ahead are:
Education – R27.9-billion;
Health – R17.5-billion;
Social development and special programmes – R2.1-billion;
Roads and public works – R4-billion;
Rural development and agrarian reform – R1.8-billion;
Economic development – R1.4-billion;
Transport – R1.7-billion;
Human settlements – R2.4-billion;
Local government – R876-million;
Sport, recreation, art and culture – R769-million;
Provincial planning and treasury – R377-million; and
Office of the premier, safety and liaison and provincial legislature – R981-million. —
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