26 February 2007
Gauteng MEC for Finance and Economic Affairs, Paul Mashatile, today
delivered Gauteng's R40 billion budget for the 2007/08 financial year. This
year's budget represents a 14% increase on the total allocation for last
year.
Speaking at the Gauteng Legislature, Mashatile said this year's budget will
sustain the momentum built by the provincial government in accelerating the
shared growth of the provincial economy, creating jobs, fighting poverty,
developing skills, improving healthcare and safety in Gauteng.
"Since 2004 and even before that, we have tabled to this House successive
budgets that have progressively extended the resource envelope devoted towards
meeting the goals we have set for ourselves. The budget we are tabling this
year is no different," Mashatile said.
This year's budget is also expected to strengthen efforts aimed at
positioning Gauteng as a globally competitive city region.
Mashatile said over the next three years the provincial government will
spend a total of R131 billion. In the 2008/09 and 2009/10 financial years, the
provincial government is expected to record a surplus totalling R1,6 billion.
"The surplus will allow the Executive Council (ExCo) to increase spending on
programmes aimed at boosting economic growth and thus contribute to job
creation," he said.
Education received the largest share of this year's budget followed by
health. About 70% of the total budget was allocated to social services which
comprises of education, health and social development.
The remaining 30% of the total budget was allocated mainly to the
departments of housing, public transport, roads and works and economic
development. The bulk of this allocation will be directed towards
infrastructure spending.
Over the next three years the provincial government together with
municipalities will spend more than R50 billion on improving infrastructures
across Gauteng. Investment in infrastructure is expected to contribute
significantly to economic growth and job creation.
Mashatile increased the budget for the Department of Community Safety by
more than 50% to R335,4 million. This, he said, was part of efforts to deal
effectively with crime in Gauteng.
He also said that the provincial government together with municipalities
will allocate adequate resources to ensure that Gauteng is ready to host the
2010 FIFA World Cup.
Over the next three years a total of R1,6 billion has been allocated for the
revitalisation and building of hospitals. More than R1,5 billion has been
allocated over the next three years to fund the comprehensive HIV and AIDS
plan.
Mashatile said provision has been made in this year's budget to cater for
the needs of communities that are now part of Gauteng as a result of new
demarcations. "We wish to reiterate that service provision in these areas will
not be disrupted."
For more information contact:
Percy Mthimkhulu
Cell: 082 379 1913
Issued by: Department of Economic Development, Gauteng Provincial
Government
26 February 2007
