The Gauteng government will use most of this year’s budget on social services, beef up infrastructure and crime fighting services as well as to uplift the township or kasi economy. Finance MEC Jacob Mamabolo tabled his budget of just under R500 billion today at the Gauteng Legislature in Johannesburg.
Gauteng contributes 35% to the country’s GDP which amounts to more than R1.2 trillion. The provincial economy is estimated to have grown by 2.1% in 2022 against an expectation of 1.8%. The province’s economic output is projected to moderate to 1.5% this year before stabilising at an average annual rate of 2 % in the period to 2026.
According to Mamabolo the budget will grow by an annual average rate of 3%, from R158 billion in 2023/24 to R164. billion in 2024/25 and R169.703 billion in 2025/26.
Mamabolo said a total of 83% of the provincial budget amounting to R412 billion over the 2023 Medium-Term Expenditure Framework (MTEF) is allocated to the Social Cluster.
“These resources will be used to drive social transformation in Gauteng and are already in the baselines of the departments,” he said.
The economic cluster received R66 billion to focus on collaboration of different spheres of government.
“Honourable Members, let me now turn to the Economic Cluster which will receive a total of R66.6 billion or 13.5% of the budget over 2023 MTEF,” he added.
Mamabolo said governance cluster, which focuses on, among other things, strengthening collaboration among all spheres of government, enhancing integrated planning for improved service delivery, accounts for R12.1 billion, or 2.5% of the 2023 MTEF budget. The department of education received R4.6 billion.
“Beginning with the functions that are at the heart of why we exist as a Provincial Government, over the 2023 MTEF, a total of R4.6 billion will be allocated to the Gauteng Department of Education, these funds are to address the pressures in the Compensation of Employees baseline, as well as augment the delivery of support services such as scholar transport, school nutrition and school subsidies to make education more accessible.”
The Department of Health was allocated R5 billion while R4 billion was set aside for the Department of Community Safety in line with Premier Panyaza Lesufi’s ambitious plans to deal with crime during his State of the Province Address(Sopa) last month.
“In the Sopa, the Honourable Premier spoke of fighting crime being an Apex Priority. There is hardly anybody who has not been affected, directly or indirectly, by crime. This budget aggressively confronts the urgency with which the Gauteng Department of Community Safety will be resourced to respond accordingly.”
Mamabolo said the R4 billion additional allocation over the 2023 MTEF is for the training and absorption of the
6 000 crime prevention wardens currently undergoing training that is until the end of April 2023.
“In addition to capacitating these crime prevention wardens with the necessary tools of trade, the resource allocation will also enable the acquisition of technological solutions to fight crime such as drones, and the leasing of helicopters to enhance the visibility of crime prevention efforts. Also included in this allocation is funding for fleet services, to further capacitate traffic police to undertake their duties.”
A further R7 billion will be channelled to developing townships, informal settlements and hostels.
“It is imperative that we continue to be diligent to ensure that the budget of R 39.5 billion investment results in the desired outputs and outcomes. This amount includes a budget of R7.68 billion that has been set aside to improve the infrastructure.
“Of this amount, R3.5 billion will go towards the provision of new and improvement of existing infrastructure to enable the province to provide the required services. Some of the notable projects within the townships include the construction of housing units at Sebokeng Ext 28, construction of Sewer Pipelines and manholes at Mohlakeng- Pelzvale, Soshanguve South secondary school in Soshanguve”.
He said to improve the basic infrastructure services within the informal settlements in the province R3.8 billion has been allocated to upgrade Kwa Brown, Mamello, Piel’s Farm, Thabong, Pangoville (Munsieville), Bergsig Informal Settlement and Ratanda.
An amount of R322 million will go towards the renovation and improvement of hostels. Some of the hostels that will be upgraded include George Goch, Denver, Jeppe, LTA Rethabile, Kwama-Siza, Dube, Orlando, Diepkloof and Orlando West.
