Infrastructure Investment Key Factor For Economic Growth Godongwana

Finance Minister Enoch Godongwana says infrastructure investment will be key to promote growth over the medium term. Godongwana delivered the Medium Term Budget Policy Statement MTBPS in Parliament, Cape Town. Godongwana announced measures to accelerate the implementations of structural reforms though operation Vulindlela to forge conditions to entice public-private partnerships in major infrastructure projects. South Africa's infrastructure spend is estimated at R940 billion in both public and private sector. According to Godongwana, this will strengthen the economy to be more productive and internationally competitive, accelerate economic growth and foster job creation. The minister says mobilising significant private sector financing and technical expertise to augment the restricted public sector capacity and capability. The budget for infrastructure is being reconfigured into a consolidated gateway for major infrastructure projects that demand fiscal funding to develop. Godongwana was addressing the first MTBPS of the 7th administration under the new Government of National Unity GNU. He used his speech to outline government's measures to foster inclusive economic growth. The budget policy forecast lowered economic growth at 1.1 percent this year from 1.3 previously. It asserts strong measures against wasteful expenditure while prompting fiscal sustainability and allowing government sectors to call for alterations to their budgets. Government will introduce measures to manage the public-service wage bill through early retirements. It has set aside R11 billion for the incentive. It expects over 30 000 civil servants to take advantage of the voluntary plan to cut government headcounts. Total government spending is expected to increase from R2.4 trillion in 2024/25 to R2.77 trillion in 2027/28, growing by an annual average rate of 4.9 percent. Over the term, revenues anticipated to underperform compared to the 2024 budget plans. VIDEO Finance Minister Enoch Godongwana delivers his Medium-Term Budget Policy Statement