Capex up by R18bn – re­port

The Star Early Edition - - BUSINESS REPORT - Sizwe Dlamini

THE TO­TAL cap­i­tal ex­pen­di­ture (capex) by public­sec­tor in­sti­tu­tions in­creased by R18.4 bil­lion from R265.2bn in 2015 to R283.6bn last year.

This was ac­cord­ing to the Cap­i­tal Ex­pen­di­ture by the Pub­lic Sec­tor 2016 re­port re­leased by Sta­tis­tics SA yes­ter­day.

The largest share of the R284bn in capex ex­pended by pub­lic sec­tor in­sti­tu­tions was spent by pub­lic cor­po­ra­tions, which was R138bn (49 per­cent). This was fol­lowed by mu­nic­i­pal­i­ties with R66bn (23 per­cent), pro­vin­cial gov­ern­ments with R36bn (13 per­cent), na­tional gov­ern­ment with R18bn (7 per­cent), and ex­tra­bud­getary ac­counts with R17bn (6 per­cent).

Higher ed­u­ca­tion in­sti­tu­tions had the small­est share of the to­tal capex by pub­lic in­sti­tu­tions at R7bn (2 per­cent).

The re­port shows that be­tween the 2015 and 2016 fi­nan­cial years, there were in­creases in capex on new con­struc­tion works of R20.5bn – from R174.4bn in 2015 to R194.9bn last year. Ex­pen­di­ture on land and ex­ist­ing build­ings in­creased by R2.9bn from R14.3bn in 2015 to R17.2bn last year.

In­creases were also recorded for capex on trans­port equip­ment – from R6.4bn in 2015 to R8.6bn last year. Other fixed as­sets in­creased from R6bn in 2015 to R7.5bn last year.

De­creases were recorded on plant, ma­chin­ery and equip­ment from R62.1bn in 2015 to R53.9bn last year and leased as­sets and in­vest­ment prop­erty from R1.9bn in 2015 to R1.6bn last year. –

SOUTH Africans had ev­ery rea­son to smile last month as real take-home pay reached a 15-month high af­ter it in­creased for the fourth con­sec­u­tive month by 1.3 per­cent.

BankservAfrica’s monthly data showed slower in­fla­tion was con­tribut­ing to rise in re­al­home wages.

The BankservAfrica dis­pos­able salary in­dex (BDSI) – the coun­try’s fastest and most fre­quent mea­sure of salaries – in­di­cated slower in­fla­tion in­creases and faster nom­i­nal wage growth helped for­mal sec­tor wage earn­ers gain higher real in­creases.

As such, for­mal sec­tor work­ers paid via the South African pay­ments sys­tem are bet­ter off than a year ago.

Sea­son­ally ad­justed real take-home pay av­er­aged R13 894 last month, slightly higher than May’s av­er­age of R13 802.

With most of the last two years show­ing de­clines in real take-home pay, as seen in the BDSI, the last four months point to a strong like­li­hood of a change in the down­ward trend as in­fla­tion falls and salaries are ad­justed ac­cord­ingly.

Past rates

For­mal sec­tor real salary in­creases are record­ing im­proved in­creases on av­er­age as they are based on past in­fla­tion rates.

In­ter­est­ingly, the me­dian or typ­i­cal dis­pos­able salary in­creased in real terms last month, and for five con­sec­u­tive months. The real in­crease of 3.4 per­cent last month is the high­est for me­dian salaries in 30 months.

De­spite per­sonal in­come tax brack­ets not be­ing fully ad­justed for in­fla­tion for the last decade and med­i­cal in­sur­ance pay­ments in­creases be­ing about 3 per­cent higher than in­fla­tion, the n um­ber of em­ploy­ees tak­ing home more than R10 000 a month in nom­i­nal terms has in­creased from 33.8 per­cent in Jan­uary 2012 to 52.6 per­cent.

It, there­fore, ap­pears that take-home pay is in­creas­ing faster for lower salary lev­els.

The BDSI does not take into ac­count the monthly take-home salaries that are more than R100 000.

While con­sumer con­fi­dence is at very low lev­els in the econ­omy, real salaries for the ma­jor­ity of the for­mal sec­tor em­ploy­ees have in­creased.

PHOTO: THOBILE MATHONSI

Statis­ti­cian-Gen­eral Dr Pali Le­hohla re­leases the 2016 Cap­i­tal Ex­pen­di­ture by the Pub­lic Sec­tor re­port dur­ing a me­dia brief­ing held at the GCIS in Pretoria.

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