Drought seeps through Gordhan's Budget

File picture: Siphiwe Sibeko, Reuters

File picture: Siphiwe Sibeko, Reuters

Published Feb 24, 2016

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Parliament - The impact of the nation's drought featured prominently in South African Minister of Finance Pravin Gordhan's Budget speech on Wednesday, with many mentions of government's response and praise for those looking to lessen the devastating effects.

“Budget allocations for water infrastructure this year take into account the special needs of drought-affected areas and the need to address water losses in critical supply networks,” said Gordhan.

Of these allocations, R15 billion had been set aside over the three-year medium-term through the Regional Bulk Infrastructure Grant Programme. This, to fund the construction of bulk water and sanitation infrastructure.

The Department of Water and Sanitation had also reprioritised R502 million for the delivery of water, to protect springs and to refurbish boreholes.

“Funds have also been provided for feed and support for livestock farmers, and disaster relief measures,” said Gordhan.

Additionally, the Land Bank had set aside a concessionary loan facility to assist farmers recovering from the impact of the current drought conditions.

In the next three years, R15 billion would be allocated for land acquisition, farm improvements and expanding agro-processing opportunities.

Gordhan said that additional drought response allocations would be made in the Adjustments Appropriation later in 2016, if and as required.

In addition to government's measures, the Finance Minister called on the country to unite in efforts to protect citizens from the effects of the drought which, along with depressed global conditions, reflected in South Africa's projected 0.9 percent annual growth rate.

He made special mention of the initiative “Operation Hydrate” and disaster relief organisation Gift of the Givers for their work in bringing relief to drought-affected communities.

He added that the Gauteng province's “Ntirhisano” outreach programme illustrated that government and citizens could work together to accelerate service delivery.

Gordhan said that despite the drought and an overall decrease in agricultural output, several export products had shown strong growth, namely nuts, berries, grapes, and deciduous and citrus fruits.

“Our economic outlook is not what it should be, global uncertainty and the drought are very real challenges, but our efforts to build a better future continue,” said Gordhan.

Additional spending on responding to the drought - as well as to higher education and small business development - was accommodated through “stringent cost containment measures across all departments”.

African News Agency (ANA)

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