Gauteng budget increases by R7 billion- 09 December 2021

Office of the Premier 2021/12/08 - 22:00



Lerato Mailoane

The Gauteng Provincial Government budget has been bolstered to support economic growth and recovery efforts, create jobs for the youth and fight corruption.

Addressing the legislature during the Medium-Term Budget Policy Statement o Thursday, Finance and e-Government MEC Nomantu Nkomo-Ralehoko said the Gauteng's budget for this financial year has increased by R7 billion. 

Key to her budget is to grow the Gauteng economy by investing in SEZ-related construction projects increasing from R2.5 billion in August last year to R4.3 billion which will go a long way in growing the Gauteng economy. 

"A total of R114.4 million is allocated for technical adjustments from 

underspending infrastructure projects towards the Tshwane SEZ (TASEZ) 

Infrastructure Expansion that is expected to not only boost manufacturing but also provide much-needed jobs and stimulate the economy," she said.

The MEC said small businesses are important to the economy of Gauteng and the province is engaged in various efforts to support the growth of this sector.

As part of SMME and township enterprise empowerment, the Gauteng Enterprise Propeller in this financial year allocated R10 million as its capital seed contribution towards the establishment of the retail support fund. 

This fund focuses on the full spectrum of the township retail value chain participation. 

"The Gauteng Enterprise Propeller will increase its contribution to the fund by R10 million each year over the next two financial years," she said.

The MEC said since April 2019, the provincial government has procured goods and services from thousands of township suppliers to the value of more than R7.4 billion.

The effects of the riots which saw shops being vandalised and looted in July affected more than 18 000 jobs in Gauteng, and the cost to business in the province is estimated at R3.5 billion. 

Nkomo-Ralehoko said the provincial government through Gauteng Enterprise Propeller in partnership with the Industrial Development Corporate is assisting distressed businesses. 

To bolster employment, she said through the R1.2 billion Presidential Youth Employment Initiative, the MEC allocated R1.1 billion for the hiring of education assistants, R74.6 million for appointing health staff and assistant nurses and R43.7 million to employ more social development workers.

"We are particularly concerned about the high unemployment levels in our province, especially among our young people. It is a matter of grave concern to us that in a relatively rich province such as Gauteng, we continue to see high and deepening levels of poverty," she said.

Furthermore, R366 million was allocated towards Gautrain Management Agency Patronage Guarantee. 

Turning to infrastructure, MEC Nkomo-Ralehoko said the total infrastructure budget has been adjusted to R11.1 billion. A total amount of R10.6 billion is allocated to the departments of Human Settlements, Health, Education, and Roads & Transport. 

The remaining R506.7 million is allocated to the departments of Economic Development, Social Development, Agriculture & Rural Development, Sport, Arts, Culture & Recreation, and Infrastructure Development.

Nkomo-Ralehoko cautioned the departments to spend their infrastructure budgets prudently, thereby "improving the impact of our investment on service delivery and social gains." 

She added that the Gauteng Provincial Government is making progress on its reform initiatives to make infrastructure "affordable and enhance value for money thus ensuring 'effective, efficient, and economical use of public funds related to infrastructure investments."

She further announced that a total of seventeen departments and entities achieved clean audits in the 2020/21 financial year. 

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