Capex up by R18bn – report
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.