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Extra cash for education, health

Spending on education to grow from R207 billion in 2012/13, to R236 billion in 2014/15

Government spending is set to increase by R55.9 billion over the next three years, Finance Minister Pravin Gordhan said on Wednesday.

  Tabling his 2012/13 Budget in the National Assembly, he said spending on education would grow from R207 billion in 2012/13, to R236 billion in 2014/15.

  This additional allocation included equalisation of pupil subsidies for no-fee schools and expanded access to grade R.

  An amount of R235 million had been added to the baseline of the national department over the three-year spending period to extend the national assessments system.

  An additional R850 million was allocated to improve university infrastructure, including student accommodation.

  Medium-term priorities in health spending included hospital infrastructure, the comprehensive HIV/Aids treatment and prevention programme, and the expansion of health professional training.

  The health sector was allocated an additional R12.3 billion over the next three years.

  R1 billion was allocated for national health insurance pilot projects and increasing primary health care visits.

  To improve health infrastructure, R450 million had been provided to upgrade about 30 nursing colleges.

  A further R426 million was allocated for the initial work on rebuilding five major tertiary hospitals.

  To accommodate provision of antiretroviral treatment at the CD4 threshold of 350, an additional R968 million was made available over the medium-term.

  Gordhan said social welfare priorities included early childhood development programmes and the Isibindi childcare and protection programme.

  These were initiatives which had strong community-based employment benefits, and were allocated an additional R1.4 billion over the medium-term expenditure framework (MTEF).

  Spending on social grants would grow from R105 billion in 2012/13, to R122 billion in 2014/15. At present, nearly 16 million South Africans received social grants.

  The budget for transport, energy, and communication services increased from R84 billion in 2012/13, to R98 billion in 2014/15, rising by an annual average of 8.4%.

  A 'devolution of public transport services to metropolitan municipalities would be phased in over the period ahead, allowing for better integrated public transport networks', including rail and bus rapid transit systems.

  An additional R4 billion was allocated to the Passenger Rail Agency of SA to begin buying new coaches.

  The agency also received R1 billion to build three depots and upgrade signalling in Gauteng, KwaZulu-Natal, and the Western Cape.

  In energy, the focus was on demand-side management to address the impact of limited supply until new power stations were completed.

  An additional R4.7 billion was allocated to complete the installation of one million solar water geysers.

  R600 million went to municipalities to install low-energy lighting and equipment, and R300 million for the electrification of informal settlements.

  Gordhan said investment in municipal infrastructure and human settlements would grow from R120 billion in 2012/13, to R139 billion in 2014/15.

  Additional allocations of R9.9 billion over the medium term included the upgrading of informal settlements, a wastewater treatment plant in Sedibeng, bulk water systems in Sekhukhune, and water systems in the OR Tambo district.

  Financial support for housing development was expanded over the period ahead, additional funding allocated for the finance-linked individual subsidy programme, and further capitalisation of housing finance institutions was proposed.

  A mortgage support facility was under consideration.

  Additional allocations of R15.8 billion were provided over the MTEF period for economic services and environmental protection.

  The trade and industry department received the bulk of this funding — R5.8 billion for the manufacturing competitiveness enhancement programme and R2.3 billion for industrial development and special economic zones.

  An additional R1.9 billion went to the agriculture, forestry, and fisheries department to improve agricultural support services, and the Land Bank would receive R1 billion to conclude its recapitalisation.

  Spending on defence, public order, and safety had increased by 9.7% a year from 2008/09 to 2011/12, and would grow from R140 billion in 2012/13, to R158 billion in 2014/15.

  The sector would receive additional funding of R7.6 billion over the MTEF period to cater mainly for improved conditions of service, additional personnel, and infrastructure.

  Additional funding of R300 million was allocated for court infrastructure, including new high courts in Polokwane and Nelspruit.

  The Office of the Public Protector and the Independent Police Investigative Directorate were allocated additional funds to expand capacity.

  Funds were provided to the defence force to increase the number of troops deployed along the country’s borders.

  The budget also included R700 million in 2012/13 to recapitalise Denel Aerostructures, Gordhan said.

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