If we make the right choices and do the right things we will achieve a just and fair society, founded on human dignity and equality.
THE BUDGET continues to prioritise both national and provincial economic infrastructure requirements.
The Provincial Roads Maintenance Grant is allocated R10.8 billion in 2017/18, taking into account the increase in road traffic volumes.
Sanral receives R15.4bn over the period ahead for strengthening and maintenance of the national road network, which now stands at 21 946km.
The Department of Telecommunications and Postal Services receives R1.9bn over the medium term to invest in high-speed internet connections in public buildings and schools in eight NHI pilot districts.
The Passenger Rail Agency of South Africa continues to implement its modernisation and rolling stock renewal programme. Over the medium term, R16.7bn is allocated for 70 new train-sets for Metrorail.
The development and operation of integrated public transport networks, funded through the Public Transport Network Grant, receives R6.2bn in 2017/18.
To support higher density housing, subsidies for social housing have been rationalised and R600 million over the medium term is reprioritised to the Social Housing Regulatory Authority for investment in rental housing units.
R18.4bn over the medium term is allocated to the Regional Bulk Infrastructure Grant and R12.5bn to the Water Services Infrastructure Grant. These allocations continue to prioritise water provision in the 27 most impoverished district municipalities.
R1bn is added to the local government equitable share in 2018/19, in view of rising household numbers and infrastructure maintenance requirements.
Last year I reported on the progress being made by our metropolitan municipalities in reversing the spatial legacy of apartheid, through targeted investment in high density corridors linking townships back into our cities. This spatial transformation is a massive challenge.
Commuter rail currently provides for more than 20 percent of all passengers carried in the cities. This budget provides resources to subsidise 457 million rail passenger trips next year, as well as ongoing support to upgrade rolling stock and improve signalling systems.
All our metropolitan municipalities are undertaking a portfolio of catalytic, integrated urban development projects that will lead the way in reshaping our cities:
In eThekwini, the Cornubia mixed development node will yield 25 000 housing units, while more than R13bn in private sector investment in the nearby Dube Trade Port has been identified. A R30bn inner city regeneration programme is under way.
In Ekurhuleni, development along the corridor linking Tembisa to Kempton Park has been prioritised.
Cape Town has adopted a transit-orientated development strategy, including mixed-use development of the Bellville Transport Interchange, upgrade of the Phillipi East Station Precinct and the redevelopment of the Athlone Power Station.
In Mangaung, the airport development node is under construction and 8 500 affordable housing units will be built in and around the inner city of Bloemfontein.
In Johannesburg, there is further progress with the “corridors of freedom” linking Soweto, Alexandra, Sandton and the CBD. This includes the new bridges that can be seen along the M1. We have also seen substantial investment in township precincts in response to the neighbourhood development partnership grant with 190 projects having been completed and a further 55 in construction.
In the Joubertina/Alabama hub in Matlosana, for example, an NDP investment in transport and health facilities has been accompanied by commercial investment commitments of about R155 million.
In the Solomon Mahlangu node in Tshwane, which serves more than 500 000 people, a R1bn public investment in roads, parks and trading facilities is expected to leverage R4bn in private investment. Encouraging investment in cities and townships requires initiatives of many arms of the government.
Human Settlements Minister Lindiwe Sisulu will shortly release a White Paper on the reforms needed for more inclusive residential property markets, and accelerate the upgrade of informal settlements.
Health services The government is moving towards the next phase of the implementation of National Health Insurance (NHI). We are committed to achieving universal health coverage, in line with the vision of the NDP.
Eleven NHI pilots have yielded valuable insights, on which we are now able to build. These include: The design of contracts with general practitioners.
More effective chronic medicine dispensing.
Strengthening district health services through clinical specialist teams, ward-based outreach teams and school health services.
Supportive information systems. In the next phase of NHI implementation, an NHI Fund will be established. Its initial focus will be:
To improve access to a common set of maternal health and antenatal services and family planning services.
To expand the integrated school health programmes, including provision of spectacles and hearing aids.
To improve services for people with disabilities, the elderly and mentally ill patients, including provision of wheelchairs and other assistive devices.
In setting up the fund, we will look at various funding options, including possible adjustments to the tax credit on medical scheme contributions. Further details will be provided in the Adjustments Budget in October this year, and in the course of the legislative process.
An additional R885m has been added to support the implementation of the universal test-and-treat policy for HIV and R600m for the commissioning of the new Nelson Mandela Children’s Hospital.
The quality of our schools and further education institutions is at the heart of our commitment to our children’s future. Improvements have to begin in the foundation phase of the education “valuechain”.
We will continue to increase resources for early childhood development, improve our basic education outcomes and step up our support to TVET colleges and universities.
Education spending Spending on basic education next year will be more than R240bn, or 17.5 percent of the consolidated budget. Allocations for school building increase at 12.5 percent a year.
Spending on learning and teaching support materials increases by 9.5 percent over the next three years.
The government recognises the needs articulated by students in universities and TVET colleges.
In addition to the increases of R32bn we made in the higher education allocations in last year’s Budget and the 2016 Medium Term Budget Policy Statement, we have added a further R5bn in the outer year of the MTEF.
The government has provided funds to ensure that no student whose combined family income is below R600 000 per annum will face fee increases at universities and TVET colleges for 2017.
All poor students who applied and qualified for NSFAS awards, and who have been accepted by a university or a TVET college, will be supported. The Heher Commission of Inquiry into Higher Education and Training will complete its work by June this year.
Given the magnitude of student funding requirements, it is imperative that we develop a clear road map towards a better higher education and training system. It must clearly indicate how society will achieve access, opportunity, financing and support for students in the university and further education sectors. Several broad principles will assist in finding the way forward:
The government is determined to address the challenges identified in post-school education and training in a phased manner. Resources will be taken into account in determining the pace with which these can be addressed.
The government stands ready to engage with education stakeholders and adapt financing arrangements as may be required in future years, within the scope of available resources.
Universities, students and education stakeholders share responsibility for improving access and quality and the diversity of higher education and training provided, within a framework of consultation rather than confrontation.
A growing contribution is needed from employers and industry through funding of bursaries, internship opportunities and research programmes, recognising that this is the foundation of future productivity and technology advances.
Social assistance These provide income support to the most vulnerable in our society. These will be increased in April to compensate for consumer price inflation.
The old age grant will increase by R90 to R1 600 for pensioners over the age of 60, and R1 620 for those over 75.
The disability and care dependency grants also increase by R90 to