Infrastructure investment remains a top priority

Investing in infrastructure is one of the government’s top priorities for the coming year according to Minister of Finance Trevor Manuel who delivered the budget speech last Wednesday. Other priorities included protecting the poor, creating employment, promoting competitiveness and fiscal sustainability. According to Manuel, R787 billion will be invested in government’s infrastructure plans. Investment in rural roads and infrastructure will also be a key aspect of the government’s rural development strategy. A further R6.4 billion has been added to this budget for public transport, roads and rail networks. “The investment into roads and public transport constitutes one of the largest areas of expansion of public sector spending and is rightly prioritised as part of our response to the current deterioration in employment and economic activity,” noted Manuel. To support the investment in roads and other infrastructure, 23% of the general fuel levy will be earmarked for metropolitan municipalities. “As road-users we know there is a substantial increase in spending on maintenance and construction under way, and we still face a heavy burden of road accidents and associated claims,” he said. These costs will be covered by an increased fuel levy on April 1 of 23 cents per litre for petrol and 24 cents per litre of diesel. The budget also includes an added 17.5 cents levy for the road accident fund. The government will also contribute R1.6 billion to support South African Airways’ turnaround strategy. According to Manuel, the strategy includes reducing costs and improving efficiency. Manuel added: “I hope this will not be a recurring allocation.”