/ 30 October 2007

SA to spend R81,4bn on making life better

South Africa will spend an estimated R81,4-billion over the next three years to ease poverty and unemployment and deliver improved services, said the Treasury on Tuesday.

The Treasury said in its Medium-Term Budget Policy Statement that education and health programmes will be a priority.

It has earmarked R12,6-billion to improve sanitation, water and electricity services.

South Africa is banking on the 2010 Soccer World Cup to boost the economy and create jobs.

”Positive spin-offs from the 2010 Fifa World Cup preparations will also boost economic activity over the medium term,” the Treasury said.

Job creation in the construction sector is robust, with about 320 000 jobs created since 2001, said the Treasury.

The government intends to boost spending in its battle against Aids. An estimated 12% of South Africa’s 47-million-strong population are infected with HIV.

South Africa intends to tackle school infrastructure backlogs, said the Treasury.

Recapitalising a range of state-owned enterprises will be a priority.

”Although the bulk of capital required by state-owned enterprises is sourced from debt markets and from [our] own revenue sources, restructuring initiatives and further investment in transport and communications infrastructure will continue to be supported by the fiscus,” the Treasury said. — Reuters