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that expanded opportunities in our universities cannot rely

telecommunications, will amount to over R900 billion over

on government funding alone.

the next three years.

“Public expenditure on post-school education and training

“The budget framework forms part of an enabling environ-

has in fact grown considerably faster than other budget alloca-

ment for investment-led growth, recognising that a turna-

tions in recent years, and this will continue. At the heart of the

round in the business cycle will create opportunities for ex-

issue is that access has expanded faster than resources. As a

pansion by South African firms. “Infrastructure investment and financing of housing and

result, many students face financial hardships that undermine their ability to succeed academically,” he noted.

enterprise development will give greater impetus to growth

The Minister announced that in addition to the R16 billion

over the period ahead. As GDP growth accelerates, tax rev-

added to higher education funding in the February budget,

enue will grow and our capacity to finance public services will

National Treasury proposed that a further R9 billion be allo-

strengthen. By taking the right steps now, we lay the founda-

cated to the National Student Financial Aid Scheme over the

tions for progress ahead,” Minister Gordhan added.

period ahead, raising its funding by over 18 percent a year.

Social sector spending plans outlined in the MTBPS include:

Over R8 billion would be allocated to meet the costs of fee

which now reaches 3.5 million people.

increases for students from households with incomes up to R600 000.

A further expansion in the HIV and AIDS programme,

Increases in the National Health Insurance conditional

“We will work with the corporate sector and financial institu-

grant to continue the contracting of general practition-

tions to expand bursaries, loans and work opportunities for

ers and bring professional capacity into the School Health



“In seeking a balanced, sustainable roadmap for student fi-

nance, we appreciate that graduates who go on to earn higher

An extended child support grant for orphans.

incomes will in due course contribute a share of these gains

Funding for 39 000 Funza Lushaka bursaries for prospective

to the next generation,” he added.

A new conditional grant for employment of social workers.


Balanced fiscal consolidation Over the next three years, measured and balanced fiscal consolidation will be implemented that will see the budget deficit declining from 3.4 percent in 2016 to 2.5 percent in 2019/20. The main budget deficit, which is equivalent to government’s

In support of inclusive economic development, spending plans over the medium term include: •

economic transformation and sustainable resource

borrowing requirement, is set to stabilise at 3.2 percent of GDP over the next three years, said Minister Gordhan. Debt is projected to stabilise at just less than 48 percent

management. •

R43 billion through tax measures,” he added.

ing. •

corporate tax or through an introduction of a new tax – will be announced in the February budget. The expenditure ceiling will be lowered by R26 billion.

in large towns and cities. •

proposed for post-school education, health services and social protection.” Infrastructure investment, mainly in energy, transport and


Establishment of the National Radioactive Waste Disposal Institute.

Funding for the N2 Wild Coast road, the Moloto road and improved maintenance of both national and pro-

“Consolidated government expenditure will rise by 7.6 percent a year over the MTEF period. Additional allocations are

A shift of housing funds to speed up investment in rental housing units and planning of catalytic projects

Details on how the additional revenue will be raised – whether it will come from Value Added Tax, personal income tax,

Implementation of the agri-parks initiative, to help small farmers with production, marketing and train-

of GDP. “Over the next two years, we propose to raise an additional

A proposed R45 billion to promote industrialisation,

vincial roads. •

High-speed internet access in government buildings.

A supplementary R1 billion for the local government equitable share in 2018/19.

Public Sector Manager • December 2016 / January 2017

PSM December/January Edition 2016/2017  

Public Sector Manager Aimed at all middle and senior managers in the Public Service and the Public Sector in general, Public Sector Manager...

PSM December/January Edition 2016/2017  

Public Sector Manager Aimed at all middle and senior managers in the Public Service and the Public Sector in general, Public Sector Manager...