16 February 2006

South Africa's infrastructure spending spree continued as finance minister Trevor Manuel outlined his 2006 Budget in Parliament on Wednesday.

"Madam Speaker, to budget is to choose," he said, delivering his tenth Budget speech.

"Infrastructure investment, and skills development, are the main frontiers ahead. These are journeys that have just begun, and they promise unbounded opportunities for discovery, unprecedented opportunities for initiative and partnership."

World Cup
With the World Cup now just four years away, Manuel announced an amount of R5 billion to be spent on dedicated infrastructure over the next three years. The bulk of this will go toward the construction of five new stadiums and the renovation of five existing stadiums.

The national road and rail network is to receive an additional R3.5 billion, while the Gautrain, a rapid rail link between Johannesburg, Pretoria and the Johannesburg International Airport, will receive R7.1 billion from the national government and and additional R7.1 billion from the Gauteng provincial government.

The housing budget has been allocated an additional R9.5 billion over the next three years, an increase of almost 40%.

Parastatal support
The pebble bed modular reactor receives an additional R500 million, with increases allocations also going to the industrial development zones and various research and technology initiatives.

Altogether, spending on infrastructure will increase from R112.5bn in 2006/07; to R125.4bn in 2007/08 and R133.8bn in the 2008/09 financial year.

Parastatal enterprises will support the government's commitment to infrastructure development by planning R123,4 billion in economic infrastructure spending over the next 3 years. This includes R32 billion investment spending on rail and ports infrastructure, which will contribute to efficient and effective transportation of goods.

Siyenza manje
Manuel pointed out that infrastructure spending had lagged behind the budgeted allocations in recent years, and said that a concerted effort was being made to monitor the spending programmes more carefully.

He announced the formation of a task force of engineers and project managers, to be called Siyenza manje, to oversee and accelerate this process in "distressed municipalities".

"The investment programme is now well under way," said Manuel.

"And we will continue to see steady growth in infrastructure spending in the government accounts, in company reports and project announcements, and in the dust and noise of increasingly busy construction sites."

• Read the full text of Trevor Manuel's Budget speech on the National Treasury website.

	Parastatal spending spree Mbeki outlines growth strategy 'Mini budget' infrastructure boost

	Budget 2006  National Treasury

BUDGET 2006/07 Budget 2006: the people's guide A Budget for everyone Trevor's R19bn tax gift to SA Infrastructure spending continues Poor benefit from SA's prosperity Budget boost for World Cup

BUDGET 2006 HIGHLIGHTS Tax proposals R13,5 billion in personal income tax relief. People earning R40 000 and less pay no income tax R7-billion tax relief from the abolition of RSC levies Transfer duty relief of R4.5-billion Reduction in retirement funds tax Tax on the medical aid subsidy is changing to benefit low-income families Tax allowance for learnerships extended to 2011 Tax amnesty for small businesses The Road Accident Fund levy will increase by 5c a litre A packet of 20 cigarettes will cost 52c more, a 340ml beer can will cost 5c more and spirits will cost R1.54 more per 750ml bottle Total Spending 2006/07 R80.6-billion for welfare and social security R92.1-billion for education R54.5-billion for health R88.6-billion for economic services R9.2-billion for housing R25.6-billion for community development R34.7-billion for transport and communication R79.6-billion for protection services such as police, justice and defence