Pretoria - Although government is tightening its belt and reining in expenses, there are some areas where money will keep being spent.
Here are highlights of increased spending from Finance Minister Pravin Gordhan's speech this afternoon.
* Energy investment amounts to R70 billion this year and will be more than R180 billion over the next three years, as construction of the Medupi, Kusile and Ingula power plants is completed.
* Transport and logistics infrastructure accounts for nearly R292 billion over the next three years under Transport Minister Dipou Peters' oversight. Transnet is acquiring 232 diesel locomotives for its general freight business and 100 locomotives for its coal lines. There is R3.7 billion to upgrade the Moloto Road, R30 billion for provincial roads maintenance, R18 billion for bus rapid transit projects in cities and refurbishment of over 1700 Metrorail and Shosholoza Meyl coaches.
* R62 billion is allocated for the housing subsidy programmes of Human Settlements Minister Lindiwe Sisulu's department, and R34 billion for bulk infrastructure and residential services in metropolitan municipalities.
* R28 billion will be spent over the MTEF on improving health facilities and R54 billion on education infrastructure.
* Under Water and Sanitation Minister Nomvula Mokonyane's leadership, the next phase of the Olifants River water scheme is in progress, completion of the supply to Lukhanji Municipality in the Eastern Cape, completion of the Wolmaransstad wastewater treatment works and construction of the Polihali Dam as part of the Lesotho Highlands project.
* Government has a R870 billion public sector infrastructure programme that will roll out over the next three years.
* The Industrial Development Corporation plans to invest R100 billion over the next five years, including R23 billion set aside to support black industrialists.
* SA has completed a R7.9 billion capital transfer to the Development Bank of Southern Africa, approved in 2013, which enables it to expand lending and implementation support to municipalities, and to complement private sector funding of strategic infrastructure projects. The bank aims to increase lending by R48 billion over the next three years. Initiatives to reinforce municipal implementation capacity have been prioritised.
* The Land Bank has set aside a concessionary loan facility to assist farmers in recovering from the impact of the current drought conditions. Over the next three years R15 billion is allocated for land acquisition, farm improvements and expanding agro-processing opportunities.
* The New Development Bank will open its Africa Regional Centre in Johannesburg next month. SA's first instalment of R2 billion was paid in December last year, and the budget makes provision for further commitments over the medium term. This initiative gives impetus to SA's role as a financial centre for Africa, and will facilitate access to global finance by African investors and institutions.
* An additional R16.3 billion has been allocated for higher education over the next three years. R5.7 billion of this addresses the shortfall caused by keeping fees for 2016 academic year at 2015 levels, and the carry-through costs over the MTEF period. R2.5 billion goes to the National Student Financial Aid Scheme to clear outstanding student debt, along with a further R8 billion over the medium term to enable current students to complete their studies.
* Expenditure on basic education will increase from R204 billion this year, to R254 billion in 2018/19. By 2018, 510 inappropriate and unsafe schools will be rebuilt, 1 120 schools will be supplied with water and 916 schools with electricity.
* An additional allocation of R813 million for early childhood development is proposed to increase the number of children in ECD centres by 104 000 over the MTEF period.
* R4.5 billion is budgeted over the medium term for revitalising health facilities in the eleven NHI pilot districts, and related health system reforms. An additional R740 million has been allocated to strengthen TB programmes to encourage early detection and treatment, and R1 billion for expansion of the antiretroviral treatment programme.
* Additional funds are allocated for new substance-abuse treatment centres in the Northern Cape, Free State, Western Cape and North West provinces.
* Overall expenditure on social assistance will increase from R129 billion this year to R165 billion in 2018/19.
* Spending on defence, public order and safety services will rise from R172 billion this year to R204 billion in 2018/19.
* Projects valued at more than R130 billion are in progress to reshape cities in partnership with the private sector.
Business Report