Transport prioritised in medium-term budget

Finance minister Pravin Gordhan has prioritised spending on energy, transport and water in the government’s medium-term budget policy statement. Speaking in Parliament at the end of October, Gordhan said total infrastructure spending of R811 billion was projected over the MTEF period ahead, of which 40% will be in energy, 26% in transport and 11% in water supply. Transport is one of “several critical long-term public expenditure pressures that need to be addressed systematically over the period ahead. “We have to improve the maintenance of our transport infrastructure and networks, and invest in modern public transport systems,” he said. Infrastructure, which includes transport, also forms one of the “six key sectors” identified for the unlocking of employment in the government’s new growth path plan. In its mid-term review, the Department of Transport says it has “set up a task team to support the programme for increasing rail rolling stock capacity and a steering committee to support rail reform”. An additional R413 000 has been allocated to the “transport logistics and corridor development” programme. This programme includes the development of a national freight logistics strategy, as well as Eastern and Western corridors.