Latest news with #R20bn
TimesLIVE
23-05-2025
- Business
- TimesLIVE
Government spending plans hinge on tax agency hitting target, finance minister says
SA will need to slash spending if its tax agency does not meet its revenue collection target this year, finance minister Enoch Godongwana says, as the government focuses on keeping rising debt under control. Godongwana was speaking after making only minor adjustments to the government's spending plans and deficit projections in a third budget presented to lawmakers on Wednesday. His two previous attempts were scuppered by disagreements within the ruling coalition, chiefly over since abandoned plans to raise value added tax, that had rattled investors' confidence. Speaking to Reuters in an online interview on Thursday, Godongwana said the government did not expect to overshoot on spending. He said if the SA Revenue Service raises more than its target of R1.9-trillion in the fiscal year that ends in March 2026, there will be no need for R20bn in additional taxes pencilled in for the 2026/27 fiscal year. However, if that target is not met, "we will have to cut expenditure substantially", he said. Godongwana said the higher debt peak of 77.4% of gross domestic product that featured in his new budget reflected weaker economic growth forecasts rather than extra borrowing. Debt would peak this year, he maintained, saying doubters predicting further slippage were wrong. Financial officials will decide in July, after the SA Reserve Bank signs off its accounts, whether to draw on gains in its Gold and Foreign Exchange Contingency Reserve Account, which it started tapping last year to limit borrowing. Godongwana said friction within the coalition government over the budget had, meanwhile, eased. He said: "That noise has been exhausted. Everyone understands we have to get on with the work."
The Herald
21-05-2025
- Health
- The Herald
R20bn to hire 800 doctors
The government has set aside more than R20bn to save thousands of jobs in the public health sector, including hiring 800 more doctors. This was announced by finance minister Enoch Godongwana in the National Assembly on Wednesday when he tabled his latest version of the 2025/2026 budget, dubbed budget 3.0. He told MPs R20.8bn would be added to the budget of the health department in the next three years, or the medium-term expenditure framework (MTEF). Government has recently come under fire for not hiring unemployed doctors who have completed their community service while there are serious staff shortages at state hospitals around the country. The unemployed medical graduates recently resorted to a protest to highlight their joblessness. 'The health sector is provisionally allocated R20.8bn to cover compensation and essential services. This funding will facilitate the employment of 800 doctors who have finished their community service, safeguard about 4,700 health posts and address shortages in medical goods, services and accruals.
TimesLIVE
21-05-2025
- Health
- TimesLIVE
R20bn to hire 800 doctors
The government has set aside more than R20bn to save thousands of jobs in the public health sector, including hiring 800 more doctors. This was announced by finance minister Enoch Godongwana in the National Assembly on Wednesday when he tabled his latest version of the 2025/2026 budget, dubbed budget 3.0. He told MPs R20.8bn would be added to the budget of the health department in the next three years, or the medium-term expenditure framework (MTEF). Government has recently come under fire for not hiring unemployed doctors who have completed their community service while there are serious staff shortages at state hospitals around the country. The unemployed medical graduates recently resorted to a protest to highlight their joblessness. 'The health sector is provisionally allocated R20.8bn to cover compensation and essential services. This funding will facilitate the employment of 800 doctors who have finished their community service, safeguard about 4,700 health posts and address shortages in medical goods, services and accruals.
TimesLIVE
20-05-2025
- Business
- TimesLIVE
Government 'will remain committed to R100bn transformation fund'
Small business development minister Stella Ndabeni-Abrahams has encouraged women to participate in the public comment process for the government's R100bn transformation fund aimed at helping small businesses access funds and markets. Speaking on Tuesday at the Women's Dialogue and Stakeholder Luncheon in Paris, Ndabeni-Abrahams called on women to share their opinions of the fund despite criticism in some quarters that the concept was flawed. 'There are people hell-bent on undermining this transformational agenda that we want to drive. There are people already who are committed that they will take that process to court,' said Ndabeni-Abrahams. She said the government would stand by the fund despite opposition from some quarters, including major business organisations. 'Yes, we are a government that promotes nonracism, but we are a country with a particular history that is not going to be washed away. We are standing by our constitution in terms of addressing past imbalances,' said Ndabeni-Abrahams. The Transformation Fund was proposed by the department of trade, industry & competition. It aims to raise R20bn over the next five years and disburse R100bn, using a mix of contributions from enterprise and supplier development (ESD) obligations under B-BBEE codes of good practice and voluntary donations by big corporations. After anger that the fund would impose new obligations for corporations, trade industry & competition minister Parks Tau allayed fears, saying it would not replace existing ESD programmes and contributions would be voluntary. Ndabeni-Abrahams said the government was pushing its plan to allocate 40% of public procurement to women, however women needed strategic procurement opportunities. 'We do see that the government and the private sector still want to use women to only provide catering. We want to ensure that our role does not remain one that provides food and does the décor. We (women) are bigger than those services and that is why we are working with the department of trade, industry & competition to ensure access to funding for small business,' she said. The Women's Dialogue and Stakeholder Luncheon is the first formal engagement of the France South African Investment Conference led by Deputy President Paul Mashatile. Philisiwe Mthethwa, non-executive director at the Industrial Development Corporation, also speaking at the event, said gender equity was crucial and not only a women's issue but a societal imperative. 'Let us forge partnerships rooted not only in profits but in purpose. Let us walk out of this room with collaborations formed, capital committed, and courage renewed. We are not here because we were invited, we are ready to lead, ready to build, ready to change the story for every woman and every girl, every unseen hereon still waiting to be seen,' she said.
The Citizen
25-04-2025
- Business
- The Citizen
R100 billion debt: only 10 municipalities honouring their accounts
Only 10 municipalities are paying their accounts. There appears to be no solution in sight as municipalities' debt to Eskom continues to soar with each financial year. Eskom Group chief executive Dan Marokane briefed the parliamentary portfolio committee on electricity and energy on Friday on the power utility's affairs. The briefing came after Eskom implemented load shedding from Thursday afternoon to Friday midnight. ALSO READ: Power crisis: Is Eskom's respite just the calm before the storm? 'Despite significant progress in our generation recovery efforts, higher than expected electricity demand, the loss of generation units and extensive planned maintenance have placed strain on the system,' Eskom said on Thursday. Marokane told the committee that despite these hiccups, Eskom is in a much better place than it was two years ago. In 2023, South Africans experienced 280 days of load shedding, increasing to 329 days in 2024. In the past financial year ending March 2025, Eskom recorded just 13 days of load shedding. Eskom met the electricity demand 96% of the time in the past financial year. ALSO READ: How Eskom and National Treasury saved taxpayers more than R20bn The power utility also recorded a R16.93 billion year-on-year reduction in diesel spend, a 45% reduction in diesel costs compared to the previous financial year. 'This means that Eskom, through improving its generation performance, was able to provide electricity to South Africa without an overreliance on diesel. This is a clear sign of improved operational performance,' Marokane said. 'Plan yielding results' Marokane further slammed narratives that seem to undermine Eskom's work. He said the real numbers reflected an improvement in the power utility's overall functioning despite comments from critics. 'It's important that we state this very explicitly because very often, there are narratives that are being driven that seek to undermine the progress that the 41 000 employees of Eskom are making and those who are working in collaboration with us,' Marokane said . 'When we do so, we undermine the confidence of the work that we do and we undermine ourselves as a country. And yet, all this is done when the data is publicly available. This is the data and there is no other story to tell from this data as it is.' ALSO READ: Is Eskom winning the fight against corruption and theft? Marokane said that although there was progress, Eskom was not out of the woods yet concerning load shedding. 'The fact remains that the implementation of the generation recovery plan is yielding results. We are not yet out of the woods. We are working hard to make some corrections and adaptations to our plans to ensure we get to a place where load shedding is behind us.' Eskom debt However, despite progress, Eskom has struggled to collect payments from municipalities. While some municipalities have acknowledged their debt to Eskom, others have still not honoured payment agreements. In March 2023, the National Treasury launched the Eskom municipal debt relief programme which aims to provide financial relief to municipalities struggling to pay their debts. ALSO READ: We just came out of emergency load shedding, but Eskom has high hopes for winter At the time, 71 municipalities were targeted for the programme. However, by March 2024, only 23 municipalities were honouring their accounts. By November 2024, only 10 municipalities were honouring current accounts. The Eskom debt has now soared to R100 billion, with the utility scrambling for solutions to the challenge.
