Johnathan Paoli
Government has welcomed the release of the latest Gross Domestic Product (GDP) figures by Statistics South Africa, which showed a slight growth of 0.1% in the 4th Quarter of 2023, reflecting resilience and gradual economic recovery amidst ongoing challenges.
Gauteng Finance MEC Jacob Mamabolo delivered the budget speech for the 2024/25 financial year and said that the real GDP in the 4th Quarter reached R1 158 billion, marking continuous improvement from the pre-COVID-19 level of R1 150 billion though still below the peak recorded in the 3rd Quarter of 2022.
The Minister in the Presidency, Khumbudzo Ntshavheni said the increase, though slight, signifies continued progress in the country’s economic recovery, resilience of the country’s economy and the positive impact of government interventions.
“This growth is particularly encouraging as it surpasses pre-pandemic levels. This indicates a resilient economy showing signs of recovery, and bettering previous strength. We are particularly pleased to see the transport, storage, and communication industries leading the growth.
This modest uptick in GDP is a testament to the concerted efforts of various sectors and stakeholders in navigating the complexities that were posed by the COVID-19 pandemic and other domestic and global challenges,” Ntshavheni said.
The Minister said the modest growth indicated a positive turning point and that the government remains committed to implementing policies that foster a conducive environment for further economic expansion, and to continue to invest in infrastructure development, support small businesses, and create an environment that attracts investment.
In addition, the government of Gauteng said that it was concerned that its health budget was not aligned to the province’s rapid demographic growth and high population.
Head of Gauteng Treasury Ncumisa Mnyani said the Province still relies on outdated population data to prepare its budget and that it required a bigger slice of the equitable share from Treasury as the country’s number one migration destination.
“We all know it takes 10 years for those numbers to be updated so our budgets are lagging behind the population. Unfortunately, health is part of the Bill of Rights and when people present themselves in our facilities we will need to provide the services,” Mnyani said.
Meanwhile, opposition parties in the province said that budget cuts for some critical departments are unnecessary, following cuts to several departments including Economic Development, Human Settlements, Social Development as well as Roads and Transport.
The DA Gauteng spokesperson on finance Ruhan Robinson said the more than R154 million budget cut to Human Settlements would negatively affect the Province’s housing projects.
“The last one is in terms of crime, which the premier always highlights as the biggest issue facing Gauteng residents, and there we see the reduction of R380 million, close to R400 million, towards community safety in the province,” Robinson said.
In addition, other political parties have slammed the provincial government for the massive R840 million cut to the Department of Infrastructure Development budget while Gauteng suffered from aging and increasingly unsustainable infrastructure.
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