Gordhan focuses on job creation in budget speech
JOBURG - This year’s budget speech by Finance Minister Pravin Gordhan highlighted, among others, issues such as education, corruption and job creation.
The minister delivered his last speech before the general elections and stressed the need for rapid growth, jobs and development in the country.
He announced government’s intention to create six million job opportunities over the next five years. Furthermore, the government intended to create one million job opportunities in the agriculture and land reform sector by 2030.
With regards to education, 433 schools would be built while the National Student Financial Aid Scheme received a boost of R19.4 billion over the next three years to assist over 500 000 students.
Gordhan announced that social grants would increase this year, with the number of children receiving child support grants also increasing to 11.4 million.
Old age and disability grants would increase to R1350, foster care to R830, and child support to R310 in April and then R320 in October.
Furthermore, the minister announced that 16.5 million people would be eligible for grants by 2016/17.
Health-wise, Gordhan announced that the health department will receive R145.7 billion this year. Additionally, 2.5 million people have had access to ARVs.
He also said that R41 billion had been spent on HIV/Aids in the past five years while an additional R500 000 would be added to the HIV/Aids programme each year.
Regarding sin taxes, the minister said that alcohol prices would go up by 9c and R4.80 for beer and whisky respectively. Cigarettes would see an increase of 68c per pack.
In terms of infrastructure, spending would be R847 billion over the next three years while R43 billion would be spent on social infrastructure, health, education, and community facilities in 2016/17.
Government intends to build 216 000 houses and connect 905 000 households to electricity, Gordhan said.
The petrol price would also increase by 20c on 2 April of which 12c will be for the fuel levy increase while 8c will go to the road accident fund.
Gordhan also announced tax relief for households, which would be R9.3 billion. Economic growth was announced to be 2.7 percent this year.
“More must be done to improve management and accountability at all levels of government,” he cautioned before concluding his speech.
