PRETORIA - Statistics South Africa has said that the total Capital Expenditure (Capex) by public sector institutions decreased by 8 percent (R22 billion), from R272 billion in 2017 to R250 billion in 2018.
Although at a declining rate, public corporations recorded the highest public sector Capex for 2018 at R111 billion compared to R127 billion in 2017. This was followed by a 4 percent decline by municipalities, from R62 billion in 2017 to R60 billion in 2018.
Capital Expenditure is money that institutions spend to buy, maintain or upgrade fixed assets such as buildings, vehicles, land and equipment. It is the brick and mortar type of investment that forms the backbone on which the economy functions.
StatsSA's latest figures further indicated that provincial government Capex increased to R35 billion in 2018 from R34 billion in 2017, recording an increase of 2 percent, while extra-budgetary accounts declined by 13 5 percent, recording a total of R23 billion in 2018 from R27 billion in 2017.
Government Capex declined by 5 percent (from R16 billion in 2017 to R15 billion in 2018) while the Capex for higher education institutions remained more or less steady at R6 billion.