President Cyril Ramaphosa has given a hint on the Medium-Term Budget Policy Statement to be delivered by Finance Minister Enoch Godongwana on Wednesday saying the cost-containment measures will not affect policing, health, education, and social grants.
He said the key areas of service delivery and public employment programmes would be spared from the cost-containment measures that have been proposed by National Treasury.
Public sector unions were concerned about the plan and said it would affect the operations and functioning of the State.
Ramaphosa, who was addressing the nation on Monday, said they need to cut government spending.
The public purse has been under pressure for some time, and if the situation was not contained it would get out of hand, he said.
“We therefore remain absolutely committed to stabilising our levels of debt and adopting a responsible fiscal policy. The Minister of Finance will set out government’s plans to achieve this trajectory in the Medium-Term Budget Policy Statement on Wednesday.
“Spending on health, education, policing, and other essential services will be protected as far as possible. As we move to target spending on programmes that are working for the poor, we need to acknowledge that our social grants, including the SRD Grant, as well as our public employment programmes, are vital in supporting those who are vulnerable.
“These programmes have not only reduced poverty but have also enabled recipients to search for jobs and engage in other economic activity to support their livelihoods. The minister of finance will provide more details of these and other spending priorities when he presents the Medium-Term Budget Policy Statement on Wednesday,” said Ramaphosa.
He said they were stabilising the energy crisis, and there were more than 12,000 MW of renewable energy projects in the pipeline.
Electricity Minister Kgosientsho Ramaphosa said last week in the national legislature that they need more than R390 billion to expand grid capacity.
This was to accommodate a huge pipeline of renewable energy projects.
Eskom would need to build 14,000km of transmission lines in the next 10 years.
Government has roped in the private sector to invest in grid expansion projects.
Ramaphosa also said they were reviving the rail network, with the logistics task team working with various stakeholders.
Transnet has put up a plan to revive railway lines and bring back cargo from road to rail.
Ramaphosa also said the Passenger Rail Agency of South Africa was investing R50 billion to modernise rail corridors after they were vandalised and destroyed during the Covid-19 period.
The task teams of economic infrastructure have been cracking down on the construction Mafia.
Public Works and Infrastructure Sihle Zikalala was involved in a spat with the opposition recently over the actual number of people involved in the construction Mafia who have been arrested.
Zikalala said last week there were 682 people arrested for their involvement in the construction Mafia.