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What R217bn will do for economic growth programmes

Home Business Management Finance & Investment What R217bn will do for economic growth programmes

A total of R217 billion will be spent over the next three-years on ambitious economic development programmes aimed at promoting faster and sustained inclusive economic growth, according to National Treasury in its recently revealed Budget Review document.

Over the medium term, R14.6 billion is allocated to finalise outstanding land restitution claims and support land reform initiatives, including for subsistence and smallholder farmers.

An additional R1.2 billion in the blended finance programme is earmarked for emerging commercial farmers.

According to the document, an allocation of R81.6 billion over the medium term will support the expansion of public employment programmes while a further R1 billion is set aside to enhance accountability for waste management.

“This funding will support the development of a new tyre waste industry plan, the review of producer responsibility regulations and the development of a Waste Economy Master Plan,” Treasury said.

A R540 million Tourism Equity Fund has also been established to support black-owned and commercially viable enterprises to acquire shares in tourism enterprises.

Over the medium term, R5.3 billion has been set aside for the Department of Science and Innovation to scale up interventions supporting the local production of ventilators, nano satellites, hydrogen fuel cell technologies, and renewable energy research development and pilots.

The pilots include the KwaZulu-Natal Research Innovation and Sequencing Platforms.

Treasury said the Small Enterprise Finance Agency has been allocated R885.3 million over the same period for a blended finance model to support small and medium enterprises, and allocated R2.9 billion under the Township and Rural Entrepreneurship Fund to support small businesses in rural areas and townships.

To support industry, R17.1 billion is allocated to the Department of Trade, Industry and Competition for business incentives including manufacturing, special economic zones, the clothing and textile sector and services sector development.

These incentives will support the national industrial strategy.

The Department of Environment, Forestry and Fisheries has been allocated R1.2 billion over the Medium-Term Expenditure Framework (MTEF) period to support climate resilience initiatives, including a legislative framework, intergovernmental coordination, and job resilience plans.

Expenditure in the function will rise from R191.9 billion in 2020/21 to R217.2 billion in 2023/24. This was despite the baseline for this functional group being reduced by R11 billion over the medium term.

“This mainly affects compensation of employees, transfers and subsidies, and selected goods and services including in the Expanded Public Works Programme. The reductions affected allocations to entities and incentive programmes such as the Comprehensive Agriculture Support Programme, manufacturing development, the Clothing and Textile Competitiveness Programme, global business processing, film and television, tourism and small business support,” Treasury said. – SAnews.gov.za

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