By Lehlohonolo Lehana.
President Cyril Ramaphosa has emphasised the crucial role of the 2025 Fiscal Framework and Revenue Proposals, in driving economic growth and relieving the effects of poverty.
The budget – tabled by Finanace Minister Enoch Godongwana in Parliament last month – was passed by Parliament last week.
In his weekly newsletter to the nation, Ramaphosa pointed out that the 2025 Budget allocated up to R1-trillion for infrastructure over the medium term.
“This includes an additional R62-billion over the next three years for roa maintenance, electricity transmission lines, water and sanitation projects, school infrastructure and to support the ongoing recovery of our rail networks,” he said.
Once government’s debt repayments have been taken out, 61% of spending over the next three years has been allocated to the social wage, Ramaphosa said.
This includes the provision of free primary healthcare, basic and tertiary education and housing. Over the past 24 years we have implemented an indigent policy under which free water, electricity and sanitation services are provided to qualifying households,” he said.
He noted that social grants were another tool for alleviating poverty, explaining that this year, the value of these grants would increase at above inflation.
He said the Social Relief of Distress Grant, which has played an important role in poverty alleviation, will also be extended for another year.
“As part of improving access to healthcare, there will be a higher allocation of funding to clinics and community health centres. We are investing in the recruitment and retention of health personnel, particularly doctors and nurses, and to employ newly qualified doctors after their community service ends, “Ramaphosa highlighted.
Support is also provided to other growth-enhancing measures in the medium term, such as incentive programmes in automotive, business process outsourcing, special economic zones, electric vehicle production, clothing and textiles and other sectors.
The 2025 Budget also adjusts allocations to municipalities to allow them to address their infratsructure needs, improve service delivery and improve their revenue collection systems.
Ramaphosa emphasised that the 2025 Budget reflects the government’s Medium Term Development Plan, focusing on rapid, inclusive growth and state capacity.