Etoll system here to stay, warns Mboweni
Mboweni recently took over the reins from Nhlanhla Nene.
The budget, which most economists believed would not see any major announcements being made, came with a few surprises.
While most motorists in Gauteng have been optimistic that etolls would be scrapped, the possibility does not seem likely now.
During the budget speech, Mboweni emphasised the importance of paying for tolled roads to ensure that the country has “a road transport infrastructure that works”.
“Government remains committed to the user-pay principle because it is the most efficient and effective way to ensure that the direct benefits of services are paid by those who use them,” he said.
This did was not the end of bad news, as Mboweni announced that more money would be injected into state-owned entities, including ailing South African Airways (SAA).
This is despite SAA procurement managing annual cost savings of R400 million.
“Our state owned companies can spend our money better. Many of these state owned companies need to be reconfigured. In the past year, almost all of the regional and domestic routes operated by South African Airways have become profitable. SAA will reduce and ultimately stop operating loss making international routes. To support a sustainable reconfiguration, of our airline portfolio, in 2018/19 government will provide additional funding for SAA and South African Express Airways,” he adds.
Government departments have been mired in gross corruption and overspending over the past ten years, something Mboweni vowed to put a stop to.
Earlier this week, Public Protector Busisiwe Mkhwebane confirmed that she would be investigating the R3 billion Giyani water project.
The project, which was meant to supply 55 Limpopo villages with water, has been abandoned.
It is alleged that the Department of Water and Sanitation has failed to pay the construction company contracted to do the job.
“The Giyani Water Project is plagued by malfeasance. It is cesspool of corruption. The challenges range from a complete disregard for supply chain rules to poor contract management, resulting in irregular expenditure.
“I have asked the Director General of the National Treasury to work the Department of Water and Sanitation to ensure that appropriate action is taken against guilty officials implicated in the AG's report,” he adds.
President Cyril Ramaphosa is also set to visit Giyani, to go and inspect the project.
South Africa's economic growth has been revised down from 1.5% to 0.7% for 2018.
It has been predicted that growth will only exceed 2% in 2021.
To stimulate economic growth, Ramaphosa announced five measures that would boost the country’s economy. These include:
1) Implementation of growth enhancing economic reforms.
2) Reprioritisation of public spending to support growth and job creation.
3) Enhancing infrastructure investment and establishing an infrastructure fund.
4) Addressing urgent and pressing matters in education and health
5) Investing in municipal and social infrastructure improvement.
During the budget, attention was also shifted to education and health.
Government has made a commitment to eradicate pit latrines at all schools and that female learners will have access to free sanitary towels.
“Our children must have access to adequate sanitation. The President has directed that there is a plan to ensure that all schools have safe and appropriate sanitation. We will ensure that female learners in schools have access to sanitary pads. Funds will be added to the provincial equitable share to enable provinces to progressively further this objective,” he adds.
Adding to the good news for female learners, Mboweni says more items would be added to the zero rated VAT list.
The list includes sanitary towels.
“After considerable debate and consultation, as of 1 April 2019, government will zero rate the following items.
1) Sanitary pads,
2) Bread Flour and
3) Cake Flour.”
Although government has a tough road ahead, the minister believes that all plans set out by the president are feasible.
"The president's plan is achievable, but any growth plan must be built on two macroeconomic preconditions: A sustainable fiscal position and low stable inflation," he said.