Govt spent R202bn on economy in 2012

2013-07-31 12:27

Government injected more than R202 billion into the economy in 2012, Statistics SA has said.

Total spending by public sector institutions increased from R181bn in 2011 to R202bn in 2012, Statistician General Pali Lehohla told reporters in Pretoria today at the release of a survey on public sector spending.

The bulk of the money – R137bn – went into new construction projects, while R38bn was spent on plant, machinery, and equipment.

“The figures show that municipalities were under-spending on vital equipment related to service delivery,” Lehohla said.

Over the five-year period 2008 to 2012, the amount spent by public sector institutions on new construction projects more than doubled, from R68bn to R137bn.

Total capital spending on plant, machinery, and equipment by public sector institutions increased from R24bn in 2011 to R38bn in 2012.

Lehohla said there was a correlation between bulk infrastructure and service delivery.

“Service delivery is influenced by long-term infrastructure but municipalities are not investing adequately in equipment and machinery,” he said.

“Employment-related costs in municipalities continue to grow. But there is no spending on equipment and machinery. This raises the question, who is doing the work?“

Municipalities increased their spending on new construction projects over the five-year period from R25bn in 2008 to R31bn in 2012.

Between 2011 and 2012, municipalities grew their spending on new construction projects from R28bn to R31bn.

Capital expenditure by state-owned entities grew from R73bn in 2011 to R79bn in 2012 with spending varying on power stations by Eskom, e-tolling, and purchase of new railway locomotives.

» This article was updated after first published

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