Last week, the Minister of Finance presented a national budget that will help achieve faster and more inclusive economic growth while supporting development goals.
Over the past five years, we have taken several steps to get our economy back on track. We have implemented far-reaching reforms in energy, logistics, water and telecommunications to address binding constraints on growth.
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We have created a stable macroeconomic environment to encourage investment. And we have expanded public employment and social protection to create jobs and provide income for the unemployed.
This budget furthers our path to reviving our economy and rebuilding our institutions in at least three important ways.
First, Budget 2024 demonstrates that we remain steadfast in our commitment to achieving a sustainable fiscal trajectory.
Over the past 15 years, our debt burden has increased to the point that we spend more on interest payments than on education and health services.
Reducing debt gives us more room to spend on what matters: building infrastructure, improving schools and hospitals, and making our communities safer.
At the same time, the less a country borrows, the more it can invest in the economy. This will help create a virtuous cycle of investment and growth for years to come.
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Second, the budget protects vital services and social spending and ensures that the government can meet its most important obligations to all South Africans.
We have allocated additional funding for service delivery to help pay the salaries of police officers, teachers, nurses and doctors. This year alone, we will spend over R480 billion on education, over R272 billion on health, and over R265 billion on other services such as water, housing and public transport.
A further R7.4 billion has been earmarked for the Presidential Employment Stimulus, which has already created more than 1.7 million jobs and livelihood opportunities in the past three years and ensured the continuation of vital programs such as school assistants. We are also increasing social grants to help the poorest households cope with rising costs of living.
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In accordance with the promises I made in my State of the Union address, additional funding has been allocated to combat corruption and state capture.
Third, the budget includes new measures to support growth and create jobs while rebuilding infrastructure.
A new R2 billion grant has been established to fund the rollout of smart meters in local authorities. This helps modernize the power system and reduce load shedding. Generous incentives to support the production of electric vehicles will be introduced from 2026 as part of efforts to position South Africa as a leading player in the green economy.
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Innovative new financing instruments have been introduced for infrastructure projects, with the National Treasury announcing revised regulations to facilitate the implementation of public-private partnerships. These measures will enable significant investment in infrastructure.
Our economy has been burdened by more than a decade of low growth and rising debt, which was exacerbated by erosion of confidence during the state occupation. Over the course of this administration, we have worked hard to change that and build the foundation for higher growth and more jobs.
Budget 2024 shows we are moving in the right direction. We are determined to continue on this path, pursuing economic reforms, strengthening public finances, and protecting basic services for the poor. Together, we will ensure that better years lie ahead.
Click here for the full #Budget2024 content.