Budget Speech 2022

Spending Proposals

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In this budget, we are taking steps to support education, health, the fight against crime and corruption, and to improve capital investment, amongst others.

 

Over the next three years, we allocate R3.33 trillion to the social wage to support vulnerable and low-income households. This is approximately 60 per cent of non-interest spending.

 

We have prioritized spending on the following key areas:

 

In 2017, government announced a policy for fee-free higher education. We are announcing an additional allocation of R32.6 billion for financial support to current bursary holders and first-year students under the National Student Financial Aid Scheme.

 

Any further shortfalls will be funded from within the baseline of the Department of Higher Education.

 

Madam Speaker, at the height of the COVID-19 our teachers had to make tremendous sacrifices to ensure that our children get education.

 

Equally our health care workers, we among those that were the last and only line of defence against the pandemic.

 

In this budget, we are adding R24.6 billion for provincial education departments to address the shortfalls in the compensation of teachers.

 

An additional R15.6 billion is allocated to provincial health departments to support their continued response to COVID-19, and to bridge shortfalls in essential goods and services.

 

R3.3 billion is allocated to absorb medical interns and community service doctors.

 

R8.7 billion is added to the Police budget.

 

The department is allocated R1 billion to implement personnel reforms.

 

Another R800 million may be available in the following year, subject to satisfactory progress.

 

We are also strengthening the resourcing of the justice system and our courts.

 

In this regard, the budget of the Department of Justice and Constitutional Development is increased by R1.1 billion, while the Office of the Chief Justice receives an additional R39.9 million.

 

The South African National Roads Agency (SANRAL) receives an additional R9.9 billion for maintaining the non-toll road network.

 

Over and above this, the Budget Facility for Infrastructure has approved funding for several water projects:

 

R2.1 billion is allocated for raising the Clan William Dam.
The Lepelle Water Board is allocated R1.4 billion for the Olifantspoort and Ebenezer plants.
The Umgeni Water Board is allocated R813 million for the Lower uMkhomazi Water Supply Scheme.

 

I am also pleased to announce that the project to modernise six border posts, including Beitbridge, is at an advanced stage of preparation. Feasibility studies have been completed and a request for proposal (RFP) will be issued in March 2022.

 

Madam Speaker, we watched in outrage and sadness as flames devoured the buildings in which our constitution was born.

 

I am gratified to learn of the enthusiasm of South Africans who want to be part of rebuilding Parliament, and I look forward to a truly national effort for this.

 

The department of social development will receive the largest allocation of R58.6 billion over the medium term for the following:

 

First, to initiate a new extended child support grant for double orphans. This is to encourage the care of orphans within families rather than foster care
Second, to provide for inflationary increases to permanent social grants.
For the 2022/23 fiscal year, the old age, war veterans, disability and care dependency grants, will increase by R90 in April and a further R10 in October. The foster care and child support grants will increase by a once off R20 in April;
Thirdly, R44 billion is allocated for a 12-month extension of the R350 social relief of distress (SRD) grant.

 

Honorable Members, the social relief of distress grant was introduced in 2020/21, as a temporary relief measure in view of the plight of those who have lost economic opportunities and were adversely affected during the worst periods of the pandemic. This emergency grant added to the country's already extensive social safety net. South Africa now pays grants to more than 46 percent of the population.

 

Finally, the 2022/23 contingency reserve is increased by R5 billion. This provides for an amount already approved in the previous Budget for the Land Bank to be paid in the new financial year.